United States / Latin America. Ingersoll-Rand and Mitsubishi Electric Corporation announced the conclusion of an agreement to establish a 50% to 50% joint venture (JV) pending global antitrust review.
The new joint venture will include marketing, sales and distribution of ductless heating and air conditioning systems and VRF through Ingersoll Rand's Trane and American Standard commercial and residential channels, and existing Mitsubishi Electric distributors and representatives in the United States and select Latin American countries.
The systems sold by the joint venture will be mini-split, multi-split, and VRF air conditioners and variable speed heat pumps for homes, light commercial and commercial applications. The joint venture will distribute products with the Trane or American Standard brand and the Mitsubishi Electric corporate logo to Ingersoll Rand channels. The joint venture will also continue to serve Mitsubishi Electric's U.S. distributors and representatives with the Mitsubishi Electric-branded product.
"We are pleased to enter into a new joint venture with Mitsubishi Electric in the United States," said David Regnery, executive vice president of Ingersoll Rand. "Together, our strong offering and ability to serve customers in the multi-billion dollar and growing segment without pipelines will be superior. The unique value of the joint venture is the pairing of premium systems, extensive distribution, deep technical, product and application expertise, and allows us to leverage Ingersoll Rand's extensive service capability."
"Mitsubishi Electric is excited to establish a strong and successful partnership with Ingersoll Rand," said Keijiro Hora, president and CEO of Mitsubishi Electric US, Inc. "The strength of our brands, combined with our product expertise, industry knowledge and channel coverage result in superior customer offerings."
Pending favorable global antitrust reviews and customary closing conditions, the new joint venture is expected to be operational in the first half of 2018. A chief executive officer will be appointed by Mitsubishi Electric, a chief financial officer will be appointed from Ingersoll Rand, and the companies will operate from headquarters in Suwanee, Georgia. Ingersoll Rand and Mitsubishi Electric US, Inc., a subsidiary of Mitsubishi Electric Corporation, will have equal ownership. Financial terms of the deal were not disclosed.
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