Apollo bets on Texan air con deal

The New York private equity house is to acquire Texas based air conditioning and heating equipment manufacturer Goodman Global for $1.43bn.

Apollo Management, the New York-based private equity firm, has agreed to acquire air conditioning and heating equipment manufacturer Goodman Global Holdings for approximately $1.43 billion (€1.09 billion), according to a press release.

Goodman is a Houston-based company previously owned by the Goodman family. Founded in 1982 by entrepreneur Harold Goodman, it markets its products under brand names including Janitrol, Amana and QuietFlex.  According to The Deal, the company has been searching for a buyer since the summer, and that members of the Goodman family will retain a significant minority holding.

The acquisition is subject to approval under US anti-trust law, and is expected to be completed in the first quarter of 2005.

US law firm King and Spalding advised the vendors on the transaction.

This has been a good week for Apollo. The Deal also reports that the firm has achieved a 600 percent gain on an investment made only one year ago. It invested $120 million in equity as part of a $560 million buyout of agricultural distributor UAP last November. On Monday, Apollo announced that following the company's flotation on Nasdaq, its initial equity outlay was now worth $843 million.