U.S. debt markets deteriorated during Goodman sale process, reducing bidder pool

During Goodman Global's sale process in 2007, the U.S. debt markets deteriorated significantly. Of seven preliminary bidders, only Hellman & Friedman ultimately submitted a definitive bid. Another sponsor (Sponsor A) had a $950 million to $1.05 billion equity financing shortfall, highlighting the impact of credit market conditions on PE deal-making in the HVAC sector.

“Subsequent to the July 13, 2007 preliminary bid deadline, the U.S. debt markets deteriorated and of these seven parties, only Hellman & Friedman LLC (“H&F”) (via an affiliate) ultimately submitted a definitive bid, which definitive bid was within the range indicated above.”

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