Goodman to be Acquired by Apollo Management
Nov 19, 2004
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HVAC equipment maker Goodman Global Holdings, Inc. and U.S. private investment firm Apollo Management, L.P. have signed definitive agreements under which Apollo will acquire Goodman for approximately U.S. $1.43 billion.

Based in Houston, TX, U.S. Goodman is a privately held air-conditioning and heating equipment manufacturer that produces products under the Goodman, Amana Heating and Air Conditioning, GmC, Janitrol, and QuietFlex brands.

"We are pleased to announce this important transaction with Apollo," said John B. Goodman, the chairman of Goodman's board of directors. "We believe that our strong brand names and market-leading position, combined with Apollo's financial resources and extensive relationships, will further Goodman's position as a premier company in the heating, ventilation and air conditioning (HVAC) industry."

Mr. Goodman continued, "On behalf of the members of the Goodman family, we are very excited about the prospect of partnering with such a well-respected financial investor, as well as the existing management team, to continue providing value and quality to our customers and to propel growth into the future."

Under the terms of the agreement, members of the Goodman family will retain a significant investment in the company. Members of Goodman's senior management team are also acquiring an interest in the new company. Following Apollo's acquisition, John B. Goodman will continue to serve on Goodman's board of directors. The senior management team, led by President and CEO Charles A. Carroll, will continue to serve in their current capacities.

"We are excited to be partnering with the management team and are strong supporters of their current strategy for continued growth," said Larry Berg, a senior partner with Apollo. "Goodman's leading market position and value proposition provide a compelling platform. Together with the continued experience and backing of the Goodman family, we look forward to helping the company further capitalize on the exciting opportunities that lie ahead."

The closing of the acquisition, which is expected to occur in the first quarter of 2005, is subject to obtaining approvals under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions for transactions of this nature.

Goldman, Sachs & Co. served as financial advisor to Goodman. Apollo has obtained debt commitments to finance the transaction from J.P. Morgan Securities Inc., UBS Securities LLC, and Credit Suisse First Boston.

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