Goodman sold!!

[gary_g]

Goodman Global Sold in $1.8B Cash Deal
Monday October 22, 11:27 am ET
By John Porretto
Goodman Global Acquired for About $1.8 Billion by Private Equity Fund


HOUSTON (AP) -- Goodman Global Inc., a manufacturer of heating, ventilation and air conditioning equipment, said Monday it has agreed to be acquired by affiliates of private equity firm Hellman & Friedman LLC in an all-cash deal valued at about $1.8 billion.


Goodman shares shot up 12.41 percent in morning trading.

Goodman stockholders will receive $25.60 in cash for each outstanding share upon close of the transaction, which is expected to take place in the first quarter of 2008.

The number of shares outstanding Monday stood at roughly 70 million. The offer is a 17 percent premium above Friday's closing price of $21.84.

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

Houston-based Goodman Global said in July it had retained Goldman, Sachs & Co. and J.P. Morgan 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 president and chief executive, said in a statement.

In July, Goodman Global said its second-quarter net income more than quadrupled to $39 million from a year ago on higher sales and prices. 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 has obtained $1.1 billion in commitments for senior secured credit facilities and $500 million in commitments for senior subordinated debt to finance the acquisition.

Stockholders holding a majority of Goodman's outstanding shares have agreed to vote in favor of the transaction.

Hellman & Friedman is a private equity investment firm with offices in San Francisco, New York and London.

In trading Monday, Goodman shares were up $2.73, or 12.5 percent, to $24.57. The shares have traded in a range of $13.50 to $26.60 in the past year.

[fincomber569]

I wonder if private ownership will bring on some QC at The GOO monster. My Co. handles six lines of equipment and Goodman is highest warranty to sales ratio by far.
Last spring Rumor was that Mitsubishi was looking to aquire Goodman. Those Japs are too smart for that.

[centralairekc]

Does anybody like goodman products. Are their products built well and reliable?

[BigJon3475]

Yeah I like em.....I don't think anyone can deny that they are well built and at a good price....Brand bashing is just pitiful. Heck I guess the ARI sticker on them doesn't mean what it does on a Trane or Carrier product. I think it's more important for a good install as a bad install will make any product unreliable.

[centralairekc]

Yeah I like em.....I don't think anyone can deny that they are well built and at a good price....Brand bashing is just pitiful. Heck I guess the ARI sticker on them doesn't mean what it does on a Trane or Carrier product. I think it's more important for a good install as a bad install will make any product unreliable.

Do you sell more goodman's than trane or Carrier?

[BigJon3475]

I don't sell anything.

[centralairekc]

I don't sell anything.

Then what do you do?

[BigJon3475]

I don't sell anything. So maybe I can't make a good deduction.

[centralairekc]

I don't sell anything. So maybe I can't make a good deduction.

Do you at least install Goodman's?

[BigJon3475]

I have and also Payne. So my terms are subjective. I also have worked on Trane builders grade. I really don't see much of a difference in any of them except price and size differences. Goodman will be as good as it's installed. I'm sure some will argue differently.

[centralairekc]

I have and also Payne. So my terms are subjective. I also have worked on Trane builders grade. I really don't see much of a difference in any of them except price and size differences. Goodman will be as good as it's installed. I'm sure some will argue differently.

I see! Thanks!!!

[mark beiser]

Didn't the ownership of Goodman change hands last year too, or did that deal fall through?

[in-trane-ing]

I agree w/ big jon about quality is w/ the installation but it does seems like I work on more tranes than anything else.
Scott

[aircooled53]

http://today.reuters.com/news/articl...N-UPDATE-2.XML

Goodman with money to build and engineer new products, could be a real good deal for everyone.

I would say that Goodman has increased it's market share from 17% to maybe 31% with that move.

As far as Goodman equipment, it has become strong in the market in the past 5 years, and increases to show better products every year.

The grip that I had with them was selling to public and online well here in AMD FTW. that don't happen anymore for any products.

[johncavh]

didn't goodman have to drop the janitrol name to get people to sell them

[Black Adder]

Have installed a few of the newer Goodman/Amana units. I really don't care for them. Found them to be really noisy, burners and inducer motor. Have gone back to installing American Standard exclusivly and love their equipment. Love having happy customers instead of complaints about noise. I think for dependablility Goodman is as good as any other brand, they all have their problems.

[gary_g]

I am just a lowly homeowner. I like the fact that Goodman provides detailed operating info on its website such as expanded heating and cooling data as well as ARI test data. I was able to spec out my own heat pump (replacement for old 7 SEER, 3-ton, Trane) and chose the GSH14 because of the Copeland scroll compressor. Kept R22 refrigerant. Went with a fixed speed fan in the air handler (they can keep that v-s stuff), a TXV, and a hard-start cap. Getting a full 36,000 btu of cooling, 14 SEER, 12 EER, and 9 HSPF. Those are solid numbers with a fixed speed fan. Bought it myself thru an A1 rated Goodman supplier and paid a pro to install it. I'm very happy so far. Electric consumption has been reduced by 42% comparing August '07 to August '06.

My only complaint is the quality of the sheet metal in the air handler is very poor and the track for the 1" filter is poorly designed and almost an afterthought. I have to literally rip out the old filter and struggle to install a new one. I should have gotten a 4" media filter and avoided this problem.

[Black Adder]

There is a price to pay for the lower price of Goodman. Thinner sheetmetal is just one of the ways to cut down on costs. I also think their filter setup is a piece of crap. Set one of these down in an upright position and you are just about always going to find that the frame begins to collapse or go out of shape. Don't know why you would not opt for variable speed. The cost is not much more and the benifits far outweigh any cost difference. I for one don't like any company that will sell HVAC equipment direct to the public.

[gary_g]

Don't know why you would not opt for variable speed. The cost is not much more and the benifits far outweigh any cost difference. I for one don't like any company that will sell HVAC equipment direct to the public.

I didn't want the v-s because of the high replacement cost should the ECM motor fail out of warranty. One failure and any savings over the life of the system is nullified. I think like a homeowner and not like an HVAC pro. I can't get wholesale parts and free installation (one poor lady on a different site paid $1000, part only, for an OEM Bryant ECM - my entire air handler was 2/3 that price). I also like a little noise coming out of the registers to drown out the street noise. Goodman now makes a 5 speed energy efficient motor for a new model air handler - a compromise between the PSC and ECM motors. This was not available when I bought my unit in May '07.

Sorry you don't the company I bought from. I love them.

Take care.

[Black Adder]

Can't see why the cost of repair should be a factor, goodman offers 10 year parts warranty on their equipment.