Johnson Controls and Hitachi announce air conditioning joint venture
Johnson Controls and Hitachi have announced that they have signed a non-binding memorandum of understanding (MoU) through which Johnson Controls will obtain a 60% stake in Hitachi Appliances' global air conditioning business (excluding sales and service operations in Japan and certain other assets).
The companies expect the joint venture to be effective from 2014, subject to final due diligence and board approvals, definitive agreement on terms, required regulatory approvals and other customary conditions.
The move will make Johnson Controls the world's largest commercial air conditioning provider.
Building on the leadership of both companies, the partnership will include key products such as Variable Refrigerant Flow (VRF) and inverter technologies supporting both the commercial and residential markets. The joint venture will combine Johnson Controls' global reach with Hitachi's technology expertise.
President and chief executive officer of Johnson Controls, Alex Molinaroli, said: 'Technology leadership derived from its ongoing investments in research and development have established Hitachi as a key contributor to the global HVAC industry. The addition of these capabilities adds key technologies to our product portfolio.
'Combined with our existing $15 billion building technologies and services business, this investment positions Johnson Controls as the world's largest commercial air conditioning provider.'
A global multi-industrial company, Johnson Controls is a leading supplier of heating, ventilation, air-conditioning, building controls, refrigeration and security systems for buildings. Through its Building Efficiency business, the company delivers solutions that increase energy efficiency and lower operating costs for over a million customers who are served through nearly 700 offices in more than 150 countries.
Hitachi Appliances is a global home appliances and air conditioning solutions provider and a wholly owned subsidiary of leading global electronics and infrastructure solutions provider Hitachi Ltd. It supplies high quality, efficient and reliable air conditioning solutions across the globe, from inverter based residential room air conditioners to variable refrigerant flow systems, and other air conditioning equipment for commercial and industrial use.
President of Hitachi, Hiroaki Nakanishi, said: 'Both companies have a long and proud history of innovation and growth in the industry with similar values and cultures. As the worldwide air conditioning business environment continues to evolve, we believe Johnson Controls and Hitachi's partnership can supply integrated solutions to fulfil the needs of customers around the world.'