Johnson Controls And Hitachi To Form Global HVAC Joint Venture

(RTTNews) - Johnson Controls Inc. (JCI), Japanese electronics company Hitachi Ltd. (HTHIY.PK) and and Hitachi Appliances, Inc. reaches a definitive agreement for their global joint venture. 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.

Unner the agreement, Johnson Controls will obtain a 60 percent ownership stake in Hitachi Appliances' more than ¥300 billion sales or approximately $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 variable refrigerant flow (VRF) technology, leading-edge inverter technology based room air conditioners and absorption chillers.

With approximately 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.

The Johnson Controls-Hitachi joint venture management team will be led by Franz Cerwinka, CEO. He has been with Johnson Controls for almost 20 years, having spent four years in Japan as vice president of finance for the Johnson Controls automotive business, including experience with more than 10 joint ventures.