North America. Samsung and Lennox said the new company will provide the U.S. and Canadian markets with variable refrigerant flow HVAC systems, ductless mini-split, air conditioning and heat pumps.
According to the agreement announced by the parties, the company will be called Samsung Lennox HVAC North America. Of this, Samsung will own 50.1% while Lennox will control the remaining 49.9%.
"As the requirements for air conditioning systems and heat pumps (ducted and ductless) advance together, the synergies of having both offerings for customers are increasing," both companies noted.
"This joint venture represents the union of two leading brands with strong market positions and deep customer confidence. It is an honor to work with Samsung as we invest in solutions to meet our customers' HVAC needs. I am excited about the future of this company as part of our growth strategy," said Lennox CEO Alok Maskara.
Samsung Lennox HVAC North America will distribute Samsung's ductless heat pumps and air conditioners, as well as Lennox powered by Samsung's branded products for Lennox. The latter will be sold through Lennox stores and the direct network of distributors. In addition, the joint venture will continue to supply Samsung-branded products to current Samsung HVAC distributors and representatives in the United States and Canada.
"It is a great pleasure to take the first step in creating a long-term partnership with Lennox, aimed at occupying a leadership position in the HVAC industry," said KS Choi, president and CEO of Samsung Electronics America. "Our collaboration, focused on advanced HVAC product offerings and customer networks belonging to the growing ductless segment, will bring new solutions to the market. We look forward to launching innovative technologies together in the future."
Pending the usual closing conditions, the new company is expected to be operational in the second half of 2024. Lennox will then purchase the joint venture's VRFs and low-GWP mini-split and multi-split products and both companies will be responsible for appointing the Chief Executive Officer and Chief Financial Officer. The commercial headquarters and operations will be based in the town of Roanoke, Texas.
