Daikin Industries has struck an agreement to buy Goodman Global for about $3.7 billion, a person briefed on the matter said on Tuesday, clinching the Japanese air-conditioner maker's long quest to buy its American rival.
An announcement is expected to be made as soon as Tuesday evening, this person said.
Goodman is currently owned by the private equity firm Hellman & Friedman, which purchased the air-conditioner manufacturer in 2008 for about $1.9 billion.
Hellman & Friedman began shopping the company around early last year, at a time when many private equity firms were looking to lock in profits by selling off their holdings.
The move prompted interest from Daikin, one of the world's biggest makers of air-conditioning equipment. Yet only three months after confirming his interest in buying Goodman, Daikin said last March that it was walking away, citing the uncertain market environment in the wake of the Fukushima nuclear power plant disaster.
< p>At the time, however, a spokesman for Daikin said that it would consider reviving deal talks if Japan's economic outlook became clearer, according to Reuters.Daikin, which is based in Osaka, has ample financial resources to buy its American competitor. The company reported about $510 million in profit for the 12 months ended June 30. And it had some $1.5 billion in cash and short-term investments on its books as of June 30.
Representatives for Daikin and Goodman were not immediately available for comment. News of the deal was reported earlier by Nikkei.
