Daikin in Talks to Buy Goodman Global to Be Top Maker of Air Conditioners

Daikin Industries Ltd., Japan’s largest air-conditioner maker, is considering acquiring Goodman Global Inc. as it aims to double sales within five years.

"It’s true that we’re considering buying Goodman," Chairman Noriyuki Inoue said at a press briefing on the company’s business plan today in Osaka. "Even if we don’t make an acquisition, we think there’s a high chance we’ll become the world’s largest air-conditioner maker this fiscal year."

Daikin is aiming for sales to climb to 2 trillion yen ($24 billion) or more in fiscal 2015, Inoue said. Revenue has fallen in the past two years, dropping 15 percent to 1.02 trillion yen last fiscal year.

Acquiring Houston-based Goodman may help Daikin pass United Technologies Corp.’s Carrier unit as the world’s largest maker of air-conditioners. Carrier reported revenue of about $11 billion in 2009, according to its website.

Daikin shares, which fell 21 percent in 2010, fell 2.3 percent to 2,892 yen as of 12:44 p.m. on the Tokyo Stock Exchange, the most since Dec. 8.

To contact the reporter on this story: Adam Le in Osaka at ale14@bloomberg.net

To contact the editor responsible for this story: Kyung Bok Cho at kcho7@bloomberg.net

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