$42 billion turnover giant Johnson Controls to obtain a 60 per cent stake in Hitachi global air conditioning business, excluding Japan
Johnson controls and Hitachi are to join forces on an air conditioning joint venture in 2014, subject to final due diligence and regulatory approvals and other customary conditions.
The joint venture will combine Johnson Controls’ global reach with Hitachi’s technology expertise.companies said the partnership will include key products such as VRF and inverter technologies supporting both the commercial and domestic 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 chief executive officer, 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.”
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 $14 billion turnover 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.
A global home appliances and air conditioning solutions provider, Hitachi Appliances, 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.
The companies said the joint venture comes at a time when the worldwide air conditioning market is rapidly changing. Customers are increasingly demanding air conditioning options with better energy efficiency in response to an increase in energy-saving and environmentally-protective regulations.
“Both companies have a long and proud history of innovation and growth in the industry with similar values and cultures,” said Hiroaki Nakanishi, President of Hitachi Ltd. “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.”
“This is great news for our customers who will benefit from the full range of solutions, equipment and service that Johnson Controls and Hitachi can offer them on a global scale,” said Mr Molinaroli.
Hiroaki Nakanishi added “Alongside with this joint venture, we look forward to exploring further opportunities to collaborate with Johnson Controls and Hitachi’s broad building solution business capitalisiing on IT-related technologies.”