Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.
December 3, 2013
Johnson Controls together with new joint venture will create world's largest commercial air conditioning provider
MILWAUKEE and TOKYO - (December 3, 2013) - Today 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.
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.
"Technology leadership derived from its ongoing investments in research and development have established Hitachi as a key contributor to the global HVAC*1 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 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, a wholly owned subsidiary of leading global electronics and infrastructure solutions provider Hitachi, Ltd., 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 proposed 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 Molinaroli.
Hiroaki Nakanishi also said "Alongside with this joint venture, we look forward to exploring further opportunities to collaborate with Johnson Controls and Hitachi's broad building solution business capitalizing on IT-related technologies."
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 170,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful. In 2013, Corporate Responsibility Magazine recognized Johnson Controls as the #14 company in its annual "100 Best Corporate Citizens" list. For additional information, please visit http://www.johnsoncontrols.com.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 326,000 employees worldwide. The company's consolidated revenues for fiscal 2012 (ended March 31, 2013) totaled 9,041 billion yen ($96.1 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes infrastructure systems, information & telecommunication systems, power systems, construction machinery, high functional material & components, automotive systems and others.
For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
Hitachi Appliances, Inc., headquartered in Tokyo, was established in April 1, 2006, through the merger of Hitachi Air Conditioning Systems Co., Ltd. and Hitachi Home & Life Solutions, Inc. that were both wholly owned by Hitachi, Ltd. Its consolidated sales for fiscal year ended March 31, 2013, totaled 569 billion yen (approximately $6.0 billion). The company supplies eco-friendly, comfortable home appliances and air conditioning products around the world capitalizing on its cutting-edge technologies.
For more information on Hitachi Appliances, please visit http://www.hitachi-ap.com/index.html
