Goodman bought for $1.8 billion

Source: Manufacturing Digital

Date :23/10/2007 04:10:35

Goodman Global, a manufacturer of heating, ventilation and air-conditioning equipment, said yesterday that it is to be acquired in an all-cash deal valued at about $1.8 billion.

The company will be acquired by affiliates of the private equity firm Hellman & Friedman.

Six months

Goodman stockholders will receive $25.60 in cash for each outstanding share. The deal is expected to close in the first quarter of 2008.

The bid is a 17 percent premium over the $21.84 a share closing price of Goodman on Friday. Shares of Goodman rose $2.52, or 11.5 percent Monday, to $24.36.

Including debt, Goodman valued the deal at about $2.65 billion.

Goodman Global, which is based in Houston, said in July that it had retained Goldman Sachs and JPMorgan Securities to help it explore options.

“After a thorough review of the strategic options, we have concluded this transaction will both reward our current stockholders and position Goodman for continued profitable growth,” Charles Carroll, Goodman’s chief executive, said in a statement.

Sales jump

In July, Goodman Global said its second-quarter net income more than quadrupled to $39 million on higher sales and prices, compared with the quarter a year ago. Sales in the quarter were $563.7 million.

Its products, marketed primarily under the Goodman, Amana and Quietflex names, are designed for residential and light-commercial use.

Goodman said Hellman & Friedman had obtained $1.1 billion in commitments for senior secured credit facilities and $500 million in commitments for senior subordinated debt to finance the acquisition.

October 23, 2007

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