Johnson Controls acquires Hitachi ownership stake

Glendale-based Johnson Controls Inc. has signed a non-binding memorandum of understanding to obtain a 60 percent ownership stake in Hitachi Appliances’ global air conditioning business.

The agreement does not include sales and service operations in Japan and certain other assets. The companies plan to begin joint venture operations next year, if due diligence, board approvals, definitive term agreements, regulatory approvals and other conditions are met.

Variable refrigerant flow and inverter technologies will be among the featured products in the commercial and residential partnership, which pairs Johnson Controls’ geographical prominence with Hitachi’s technological skills.

“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 of 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.”

The companies plan to meet the needs of an evolving air conditioning customer base, which is demanding more energy efficient cooling solutions.

“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., the parent company of Hitachi Appliances. “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.”

Sign up for BizTimes Daily Alerts

Stay up-to-date on the people, companies and issues that impact business in Milwaukee and Southeast Wisconsin

No posts to display