In a move that illustrates its stated ambition to further expand into the U.S. HVAC market, Daikin Industries, Ltd. announced on August 29 that it had signed a definitive agreement to acquire Goodman Global Group, Inc. from affiliates of Hellman & Friedman LLC, for $3.7 billion.
The acqusition follows Daikin’s 2006 acqusition of McQuay, and further strengthen Daikin’s presence in the residential HVAC market.
Goodman sources report the move combines the global, environmental, technological, and commercial expertise of the Daikin Group with the logistical, residential, and light commercial HVAC expertise of Goodman, to achieve a level of success not possible as individual companies. Daikin excels in ductless residential and commercial HVAC systems that employ its variable refrigerant volume/inverter technology. Goodman, also a major player in residential and commercial HVAC, also owns Amana , and Quietflex flexible ducting.
“Goodman is the best North American partner for Daikin as we aim to reinforce our position as the leading global HVAC manufacturer,” said Noriyuki Inoue, Chairman and CEO of Daikin Industries, Ltd. “Goodman’s market leading ducted product offering, and extensive distribution network in the largest HVAC market in the world, is complementary to Daikin’s existing products and distribution channels.”
David Swift, CEO of Goodman Global, Inc., said the combination of the Daikin Group and Goodman is the next step in becoming the definitive leader in the global HVAC marketplace.
“I’m enthusiastic about our companies coming together to further satisfy the needs of our customers now and in the future,” Swift said. Because of the different complementary products and markets that our separate organizations serve, we do not expect any immediate organizational changes.”
Goodman’s leadership team will continue to manage the company as an independent business organization, and strive to maximze the business expansion of both companies.
The terms of the agreement have not been released. The transaction is expected to close in Goodman’s fourth quarter, subject to approval by regulatory authorities, shareholders and customary conditions.
Metal Fabrication Workers More Comfortable Following Large Diameter Fan Installation
FYI: DAIKIN & GOODMAN
Daikin Industries, Ltd.
Founded: 1924, Osaka, Japan; begins production of packaged air conditioners in 1951.
U.S. base: established in Carrollton, TX, 2005.
Industries: air conditioning (87% of business), chemicals, oil hydraulics, defense.
Size: HVAC sales of $15 billion in 2011; “Fusion 15” goal is to achieve company-wide sales of $25 billion by 2015.
HVAC product lines: inventors of variable refrigerant volume (VRV) technology; LV Series; VRV Series; SkyAir; wall-mounted Inverter Series.
Leadership: Noriyuki Inoue, chairman/CEO; Masanori Togawa, president/COO; Akinori “Andy” Atarashi, president, Daikin AC.
Recent history: Acquired O.Y.L. Industries (McQuay Int’l.) in 2006. Launched residential sales division in 2010.
Goodman Global Group
Founded: 1982, by Harold Goodman.
U.S. base: Houston, TX.
Size: North American HVAC sales reached $2.1 billion in 2011. Has more than 950 distribution points throughout North America.
Product lines: Goodman and Amana residential/light commercial HVAC products; Quietflex ducting. Innovations include SmartCoil® copper condensing coils; MS 20 mini-split systems.
Leadership: David L. Swift, president/CEO.
See Goodman 30th anniversary article: CB, April, 2012, p.30; bit.ly/Goodmanat30.
New Hampton Metal Fab has reinvented itself several times over. From its roots as a blacksmith shop housed in a 20 x 40-ft. shed, it now resides in a 53,000 sq. ft. facility, precasting molds for agriculture and government equipment along with recreational and local industries.
The larger facility, while good for a growing business, posed some unforeseen problems. Chiefly, all the heat was rising to the rafters of the 40-ft. high space. Installing a large diameter, low speed ceiling fan to circulate the air not only improved worker’s conditions but significantly reduced heating costs for this Iowa-based company.
“We’d send somebody up to fix something and they’d strip down to their long johns,” recalls Pete Gallup, purchasing manager for this northern Iowa manufacturer. “The guys on the floor are standing there in Carhartt jackets, basically freezing to death. We knew something needed to be done.”
Stratifcation Solution. Stratification occurs because hot air is less dense than cold air. The air coming out of a heating system (or in the case of some manufacturing facilities, where this heat is produced from the equipment itself), is approximately 5-7% lighter than the air in the conditioned space, and it collects at the ceiling. This results in a significant vertical temperature difference from 5 to 30 F.
With winter temperatures averaging 22F, and much of the warm air in the building simply wasted at the roof line, New Hampton installed an 18-ft. diameter Big Ass Fan Model PFX2, to help destratify the air in the newest area, an addition to the warehouse, and maintain an average temperature of 68F.
Large diameter fans are capable of destratifying this air, reducing energy consumption by as much as 30%. Instead of reversing the fan, a Big Ass Fan, ranging in size from 8-24-ft. in diameter, is simply slowed to 15-25% of its maximum operating speed, without a draft. Through proper air circulation the warm air is pulled off the ceiling and brought down to the occupant level before escaping through the walls and roof.
New Hampton sources say it saved 34% in heating costs after the fan was installed. For more on this case study, visit bit.ly/Fansolution.
A Proud Day, as Taco Dedicates Innovation & Development Center
Fourteen months after Taco, Cranston, RI, broke ground on a major building project designed to secure its future in the Ocean State and enhance its competitiveness, the company has dedicated its newly completed Innovation & Development Center.
President & CEO John Hazen White, Jr. was joined by about 150 HVAC industry guests including major manufacturing representatives, trade press, and contractors for the morning event.
Taco is a leading manufacturer of heating and cooling equipment, systems, and accessories for hydronic-based applications in residential, commercial and institutional buildings. The Innovation & Development Center — a two-story 24,037 sq.ft. addition to the current building — is the centerpiece of Taco’s “Master Infrastructure Plan.”
The Innovation & Development Center is a state-of-the-art learning and training environment, complete with new classroom spaces, conference rooms, a business center, and functional labs for testing and teaching. The Center uses, displays, and provides a hands-on learning environment for the best equipment and systems that today’s HVAC industry offers for comfort, efficiency, and sustainability. HVAC products and systems will be visible throughout the entire facility as, “living laboratories” that allow for close-up viewing, hands-on learning, and teaching.
“The new Taco Innovation & Development Center is a wonderful showcase for our industry, where members of our professional community will learn about the latest technology and applications our industry has to offer. It’s also an enriching environment, where Taco employees will continue to increase their knowledge, and enhance their personal and professional lives through training and education classes and programs,” says company President and CEO John Hazen White, Jr. White is the third member of his family to operate the company since 1920.
The total project, which extends through five phases of design and construction, has employed 36 subcontracting employers and provided almost 200 jobs for the local economy. It’s scheduled to be completed by the end of this year.
Honeywell Fire-Lite Alarms Installed at Stadium
Fire-Lite Alarms by Honeywell have hit a home run for the New Hampshire Fisher Cats, the Toronto Blue Jays’ Double-A affiliate team. The alarms were installed at Northeast Delta Dental Stadium, as replacements for the stadium’s old, damaged fire system. One major benefit is more robust surge protection.
Maxwell Systems Provides Food to Hunger Center
A food drive by employees of Maxwell Systems has provided 430 pounds of food and a matching Maxwell Systems’ monetary donation to Philabundance, the nation’s largest hunger relief organization.