Hitachi, Johnson Controls and Hitachi Appliances, Inc. have entered into a definitive agreement for their global joint venture while at the World Economic Forum in Davos. The new Johnson Controls-Hitachi joint venture will allow both companies to deliver the most diverse technology portfolio in the heating, ventilation, air conditioning and refrigeration industry.
Through the agreement, Johnson Controls will obtain a 60 percent ownership stake in Hitachi Appliances’ more than Yen 300 billion sales (around $2.6 billion) global air conditioning business, excluding sales and service operations in Japan. The Johnson Controls-Hitachi joint venture will bring customers a full range of air conditioning products, including world-class variable refrigerant flow (VRF) technology, leading-edge inverter technology based room air conditioners and absorption chillers - on top of existing Johnson Controls products that meet global customer demands.
With around 13,800 employees and 24 manufacturing plants, the joint venture will build on both organizations’ technology, research and development leadership, as well as their expanding marketing channels. The transaction is expected to close later this year, subject to regulatory approvals and satisfaction of other customary conditions.
Hitachi Home and Life Solutions (India), popularly known as Hitachi, is engaged in manufacturing a range of electronic home solutions.