Goodman Global hires Goldman, mulls options: sources

By Michael Flaherty

NEW YORK (Reuters) - Goodman Global Inc. GGL.N, which manufactures commercial heating and air-conditioning units, has hired Goldman Sachs (GS.N) to explore strategic options, including a possible sale of the company, three sources familiar with the matter told Reuters on Thursday.

Private equity firm Apollo Management owns about 40 percent of the company, which went public in April 2006.

Shares of the company rose 12 percent to $24.85 on the news.

"As a matter of practice, we do not comment on any rumors," said Goodman spokeswoman Sue Ellen Nutt. Goldman Sachs and Apollo declined to comment.

Sources said that private equity firms are pursuing the company, though the process that Goldman is running is in its early stages.

Harold Goodman founded the business in 1975 to make products that would simplify the installation of central air conditioning.

Today, it is one of the largest U.S. makers of heating, ventilation and air-conditioning products. Goodman makes air conditioners, heat pumps and blowers. Net sales in 2006 were $1.8 billion, up 15 percent from 2005.

Manufacturing plants are in Houston, Tennessee, Arizona and Florida.

In their annual report, the company said there is an effort in the United States by several companies to purchase independent distributors and dealers and consolidate them into larger enterprises, which could hurt pricing.

Raw material costs for the industry are also on upswing, mostly steel, copper and aluminum.

In 2004, Goodman was acquired by Apollo, senior management and trusts associated with Goodman family. The April 2006 IPO priced at $18 per share.

(Additional reporting by Tim McLaughlin) (Reporting by Michael Flaherty;)