Johnson Controls, Hitachi and Hitachi Appliances entered into a definitive agreement for their global joint venture in the heating, ventilation, air conditioning and refrigeration industry.
Through the agreement, Johnson Controls will obtain a 60 percent ownership stake in Hitachi Appliances’ 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, inverter technology based room air conditioners, and absorption chillers.
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 as 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.
Hitachi Appliances is a wholly owned subsidiary of Hitachi. Hitachi Appliances will continue to provide Hitachi branded HVAC products in the Japanese market after this transaction.