International. Johnson Controls, Hitachi Ltd and Hitachi Appliances Inc, have signed a definitive global joint venture agreement during the World Economic Forum in Davos, Switzerland. The companies say the new joint venture will allow them to deliver the most diverse technology portfolio in heating, ventilation, air conditioning and industrial refrigeration.
Through the deal, Johnson Controls will gain a 60% stake in Hitachi Appliances' global air conditioning business, excluding sales and service operations in Japan, which are worth more than $2.6 billion.
With approximately 13,800 employees and 24 manufacturing plants, the new partnership called Johnson Controls - Hitachi will rely on technology, research and development leadership of both organizations, as well as their marketing channels. The transaction is expected to close later this year, subject to regulatory approvals and review of other terms of the deal.
The joint venture management team will be led by Franz Cerwinka, chief executive officer, who has been with Johnson Controls for nearly 20 years, having spent four years in Japan as vice president of finance for Johnson Controls Automotive, including experience with more than ten joint ventures.
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