The new Johnson Controls-Hitachi joint venture will allow both companies to deliver a diverse technology portfolio in the heating, ventilation, air conditioning and refrigeration industry.
Through the agreement, Johnson Controls will obtain a 60% ownership stake in Hitachi Appliances.
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 – on top of existing Johnson Controls products.
The transaction is expected to close later this year, subject to regulatory approvals and satisfaction of other customary conditions.
Johnson Controls chairman and chief executive officer Alex Molinaroli said:
For Johnson Controls, this partnership reflects our strategic commitment to our buildings business as a growth platform
The joint venture will propel us forward with superior products, enabling Johnson Controls to deliver the most diverse technology portfolio in the industry to meet customer demands across the changing global marketplace.