Davis Polk & Wardwell is advising Japanese air conditioning giant Daikin Industries Ltd. on its $3.7 billion acquisition of U.S. competitor Goodman Global Inc. 
The deal, which is subject to regulatory approval, is expected to close in the fourth quarter. On completion of the acquisition, Osaka-based Daikin will be the world’s largest maker of air conditioning units, overtaking United Technologies Corp.’s Carrier unit.
According to the New York Times, Daikin had publicly announced its interest in acquiring Houston-based Goodman early last year, after the latter company’s private equity owner Hellman & Friedman put it on the block. But the Japanese company walked away from the deal a few months later, citing the uncertain economic environment following the Fukushima earthquake.
The revived acquisition gives Daikin access to more than 900 distribution points in North America, as well as greater exposure to the region’s commercial air conditioning market.
The Davis Polk team includes Tokyo partners Theodore Paradise and Kyoko Lin, Menlo Park partner Mischa Travers, and New York partners Jeffrey Crandall, Michael Davis, and Ronan Harty.
San Francisco-based Hellman & Friedman, which bought Goodman in 2007 for $2.7 billion, was represented by Simpson Thacher & Bartlett Palo Alto partner Richard Capelouto. The firm has previously advised Hellman & Friedman on several acquisitions, including its $1.3 billion purchase of Associated Materials in 2010 and its ongoing $3.3 billion sale of Getty Images Inc. to Carlyle Group.
Email: jseah@alm.com.