Johnson Controls signs a definitive agreement with Hitachi

Special to The Freeman

Jan. 22, 2015

 Johnson Controls CEO Alex Molinaroli, left, and Hitachi CEO Hiroaki Nakanishi enter into a joint venture definitive agreement at the World Economic Forum in Davos in Switzerland on Wednesday. 
Photo courtesy of Johnson Controls

GLENDALE — During an economic forum in Switzerland, the heads of Johnson Controls and Hitachi, Ltd. and Hitachi Appliances, Inc. signed a definitive agreement to form a previously announced global joint venture.

The partnership is intended to customers world-class variable refrigerant flow technology, as well as room air conditioners and absorption chillers to meet increasing demands for energy efficient air conditioning options, according to the announcement Wednesday. The Johnson Controls-Hitachi joint venture is expected to have 2016 sales of approximately $3 billion and the formation of the joint venture is expected to close in the fourth quarter of fiscal 2015, pending regulatory approvals, according to the companies.

As part of the agreement, Johnson Controls will acquire 60 percent ownership stake in Hitachi Appliances’ global air conditioning business, excluding sales and service operations in Japan.

“We continue to demonstrate the ability to deliver on the expectations we have set. While still early in its implementation, the Johnson Controls Operating System is delivering measurable improvements,” Molinaroli said in a statement. “We expect those benefits to grow significantly as we bring new efficiencies to our manufacturing, engineering, purchasing and IT functions. Our definitive agreement with Hitachi marks another significant step toward our transformation to a more product-focused, multi-industry company, to the benefit of our shareholders and customers. We are focused on increasing profitability and shareholder value and expect 2015 to be a year of record results for Johnson Controls.”

Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries.

For additional information, go to www.johnsoncontrols.com.