Japan's Daikin Industries, Ltd., has agreed to buy Houston, Texas-based Goodman Global Group Inc., a major maker of residential heating, ventilating and air conditioning systems.
Daikin, based in western Japan's Osaka, said Wednesday its board approved the $3.7 billion deal as part of its strategy for expanding in the U.S. residential market.
Daikin wants to expand its manufacturing and sales overseas, especially in emerging markets. It said it would draw on support from a Japanese government initiative to help offset the impact of the strong Japanese yen on exports to help finance the deal.
Goodman's president and CEO, David L. Swift, said the purchase would help Goodman to likewise expand its sales outside the U.S. Daikin said it intends to keep Goodman independent, without merging it into its other businesses.