By Lisa Kerner
Charlotte, N.C., Oct. 22 - Goodman Global, Inc. agreed to be acquired by affiliates of private equity firm Hellman & Friedman LLC in an all-cash transaction valued at some $2.65 billion, or $25.60 per share, the company announced on Monday.
The transaction is expected to be completed in the first quarter of 2008.
Hellman & Friedman plans to fund the transaction with $1.1 billion of senior secured credit facilities and $500 million of senior subordinated financing.
The firm said it has commitments for the credit facilities from Barclays Capital, Calyon New York Branch, GE Commercial Finance and certain vehicles managed by GSO Capital Partners LP and commitments for the senior subordinated financing from vehicles managed by GSO Capital Partners and Farallon Capital Management, LLC.
"After a thorough review of the strategic options available to the company, we have concluded that this transaction will both reward our current stockholders and position Goodman for continued profitable growth," Goodman president and chief executive officer Charles Carroll said in a company news release.
"With the support of Hellman & Friedman, we expect to further enhance our position in the residential and light commercial HVAC marketplace as the value leader with a low-cost structure."
Goodman said its majority stockholders have agreed to vote in favor of the deal. The Houston-based company was advised by Goldman, Sachs & Co. and J.P. Morgan Securities Inc. Goodman manufactures heating, ventilation and air conditioning products for residential and light-commercial use.
Hellman & Friedman has offices in San Francisco, New York and London.
| Acquirer: | Hellman & Freidman LLC affiliates
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| Target: | Goodman Global, Inc.
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| Transaction total: | $2.65 billion
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| Price per share: | $25.60
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| Announcement date: | Oct. 22
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| Expected closing: | First quarter of 2008
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| Stock price for target: | Nasdaq: GGL: $21.84 on Oct. 19
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