Daikin Completes Acquisition of CCOM Group, Inc. for Distribution in New Jersey and Surrounding States

Rhea-AI Summary

Daikin Comfort Technologies has acquired CCOM Group, Inc. for $2.71 per share, enhancing its HVAC distribution capabilities in North America. This move aligns with Daikin's FUSION 25 strategy to unify its brands and promote environmental solutions. CCOM's subsidiaries, including Universal Supply Group, will operate under Daikin, maintaining their New Jersey headquarters and continuing to supply significant HVAC products across the Northeast. This acquisition aims to solidify Daikin's position as a leading HVAC provider in the region.

Positive

• Acquisition supports Daikin's FUSION 25 strategy to become a leading HVAC provider in North America.
• CCOM's existing distribution network enhances market reach in the Northeastern U.S.
• The acquisition adds experienced personnel with over 165 employees to Daikin's workforce.

Negative

• None.

WALLER, Texas & HAWTHORNE, N.J.--(BUSINESS WIRE)-- Daikin Comfort Technologies North America, Inc. (Daikin) closed on the acquisition of CCOM Group, Inc. (OTC Pink: “CCOM”, “CCOMP”) and its wholly owned subsidiaries for $2.71 per share of common stock and convertible preferred stock today.

Earlier in the year Daikin announced a unified strategy to leverage strengths from Goodman and Daikin brands to expand business under one unified vision and to promote environmental solutions in the North American market. In its strategic management plan, FUSION 25, Daikin has set its sights on becoming the top provider of HVAC solutions in North America. This acquisition will contribute to the success of both strategies in the Northeast.

CCOM’s subsidiaries, Universal Supply Group, Inc., RAL Supply Group, Inc., and S&A Supply, Inc., have shaped it into a leading, full line distributor of HVAC products, building management systems, plumbing and electrical supplies, and parts and accessories in the Northeastern United States.

CCOM will continue to supply and promote the full line of residential unitary Goodman and Amana® brand equipment, Daikin ductless and light commercial HVAC products as well as a diverse lineup of additional brands and products. This includes building management systems and controls, other HVAC, indoor air quality, hydronic, plumbing and electrical equipment and supplies throughout its 15 locations across New Jersey, New York and Massachusetts.

CCOM and its subsidiaries will operate as a wholly owned business unit of Daikin, while maintaining their headquarters in Hawthorne, New Jersey with more than 165 employees.

About Daikin

Daikin Industries, Ltd. (DIL) is a Fortune 1,000 company with more than 84,870 employees worldwide and is the world’s #1 indoor comfort solutions provider company. Daikin Comfort Technologies North America, Inc. (DNA) is a subsidiary of DIL, providing Daikin, Goodman, Amana® and Quietflex brands products. DNA and its affiliates manufacture heating and cooling systems for residential, commercial and industrial use and are sold via independent HVAC contractors. DNA engineering and manufacturing is located at Daikin Texas Technology Park near Houston, Texas. For additional information, visit www.northamerica-daikin.com. Amana® is a registered trademark of Maytag Corporation or its related companies and is used under license. All rights reserved.

About CCOM Group

CCOM Group, Inc., based in Hawthorne, New Jersey with 15 total locations, has been an industry leader in HVAC, climate control systems, plumbing and electrical supplies for more than 100 years. Through its subsidiaries and divisions, Universal Supply Group, RAL Supply Group, Inc., S&A Supply, Inc., and the Universal Energy Products Division, CCOM distributes equipment, parts, and accessories throughout the Northeast. The company’s reach extends from Albany, New York and Western Massachusetts (S&A Supply) down through the Hudson Valley, Westchester County, and Long Island (RAL Supply) and through all of New Jersey (Universal Supply Group). For additional information, visit https://ccom-group.com/.

This release includes forward-looking statements, including those regarding the benefits of the transactions, the combined company’s plans and prospects, and other statements that are not historical facts. The forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking statements, some of which are beyond our control. Forward-looking statements speak only as of the date of this release and we disclaim any duty to update them except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220502005775/en/

Marc Bellanger

713.263.5505

marc.bellanger@daikincomfort.com



Wendy Hall

713.232.9229

wendy.hall@daikincomfort.com



Angie Meyer

201.249.4874

ameyer@usginc.com

Source: Daikin Industries, Ltd.

FAQ

What is the value of Daikin's acquisition of CCOM Group?

Daikin acquired CCOM Group for $2.71 per share.

How will CCOM Group operate after the acquisition?

CCOM Group will operate as a wholly owned business unit of Daikin while maintaining its headquarters in Hawthorne, New Jersey.

What is the strategic goal behind Daikin's acquisition of CCOM?

The acquisition aims to enhance Daikin's HVAC distribution capabilities and support its goal of becoming a top HVAC provider in North America.

What products will CCOM continue to supply after the acquisition?

CCOM will continue to supply Goodman and Amana branded equipment, Daikin ductless and light commercial HVAC products, and additional HVAC-related supplies.