The two entities plan to create world’s largest commercial AC provider
Johnson Controls Inc, Hitachi, Ltd and Hitachi Appliances Inc, (collectively referred to as Hitachi) announced that the companies have signed a non-binding memorandum of understanding for a transaction in which Johnson Controls will obtain a 60% ownership 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 begin operations in 2014, subject to final due diligence and board approvals, definitive agreement on terms, required regulatory approvals and other customary conditions, the announcement added.
According to the joint statement, the partnership will include key products, such as variable refrigerant flow (VRF) and inverter technologies, supporting the commercial as well as the residential markets.
“Technology leadership derived from its ongoing investments in research and development have established Hitachi as a key contributor to the global HVAC industry,” said Alex Molinaroli, President and CEO, Johnson Controls. “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.”
Hiroaki Nakanishi, President, Hitachi, Ltd, added: 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 fulfill the needs of customers around the world. Alongside with this joint venture, we look forward to exploring further opportunities to collaborate with Johnson Controls and Hitachi’s broad building solution business, capitalising on IT-related technologies.”
