International. Johnson Controls and Hitachi have announced the signing of a non-binding memorandum of understanding (MoU) whereby Johnson Controls will obtain a 60% stake in Hitachi's global air conditioning business (excluding sales and service operations in Japan and some other assets).
The companies expect the joint venture to be effective as of 2014, subject to final due diligence and board approval, definitive agreement on terms, required regulatory approvals and other customary conditions.
The agreement will include key products such as VRF systems and Inverter technologies supporting the commercial and residential markets.
Alex Molinaroli, President and CEO of Johnson Controls said, "The technology leadership stemming from its current investments in research and development has established Hitachi as a key element for the global HVAC industry. The addition of these capabilities adds key technologies to our product portfolio. Combined with our $15 billion construction technology and services business, this investment position positions Johnson Controls as the world's largest commercial air conditioning provider."
Hitachi President Hiroaki Nakanishi said, "Both companies have a long and proud history of innovation and growth in the industry, with similar values and cultures. As the global air conditioning business environment continues to evolve, we believe Johnson Controls and the Hitachi partnership can provide integrated solutions to meet the needs of customers around the world."
