MILWAUKEE and TOKYO, Dec. 3,
2013 /PRNewswire/ -- Today Johnson Controls, Inc., Hitachi,
Ltd. and Hitachi Appliances, Inc. (collectively referred to as
Hitachi) announced that the companies have signed a non-binding
memorandum of understanding for a transaction in which Johnson
Controls will obtain a 60% ownership stake in Hitachi Appliances'
global air conditioning business, excluding sales and service
operations in Japan and certain
other assets. The companies expect the joint venture to begin
operations in 2014, subject to final due diligence and board
approvals, definitive agreement on terms, required regulatory
approvals and other customary conditions.
Building on the leadership of both companies, the partnership
will include key products such as variable refrigerant flow (VRF)
and inverter technologies supporting both the commercial and
residential markets. The joint venture will combine Johnson
Controls' global reach with Hitachi's technology expertise.
"Technology leadership derived from its ongoing investments in
research and development have established Hitachi as a key
contributor to the global HVAC industry," said Alex Molinaroli, president and chief executive
officer, Johnson Controls. "The addition of these capabilities
adds key technologies to our product portfolio. Combined with our
existing $15 billion building
technologies and services business, this investment positions
Johnson Controls as the world's largest commercial air conditioning
provider."
A global multi-industrial company, Johnson Controls is a leading
supplier of heating, ventilation, air-conditioning, building
controls, refrigeration and security systems for buildings. Through
its Building Efficiency business, the company delivers solutions
that increase energy efficiency and lower operating costs for over
a million customers who are served through nearly 700 offices in
more than 150 countries.
A global home appliances and air conditioning solutions
provider, Hitachi Appliances, a wholly owned subsidiary of leading
global electronics and infrastructure solutions provider Hitachi,
Ltd., supplies high quality, efficient and reliable air
conditioning solutions across the globe, from inverter based
residential room air conditioners to variable refrigerant flow
systems, and other air conditioning equipment for commercial and
industrial use.
The proposed joint venture comes at a time when the worldwide
air conditioning market is rapidly changing. Customers are
increasingly demanding air conditioning options with better energy
efficiency in response to an increase in energy-saving and
environmentally-protective regulations.
"Both companies have a long and proud history of innovation and
growth in the industry with similar values and cultures," said
Hiroaki Nakanishi, President of
Hitachi, Ltd. "As the worldwide air conditioning business
environment continues to evolve, we believe Johnson Controls and
Hitachi's partnership can supply integrated solutions to fulfill
the needs of customers around the world."
"This is great news for our customers who will benefit from the
full range of solutions, equipment and service that Johnson
Controls and Hitachi can offer them on a global scale," said
Molinaroli.
Hiroaki Nakanishi also said,
"Alongside with this joint venture, we look forward to exploring
further opportunities to collaborate with Johnson Controls and
Hitachi's broad building solution business capitalizing on
IT-related technologies."
About Johnson Controls
Johnson Controls is a global
diversified technology and industrial leader serving customers in
more than 150 countries. Our 170,000 employees create quality
products, services and solutions to optimize energy and operational
efficiencies of buildings; lead-acid automotive batteries and
advanced batteries for hybrid and electric vehicles; and interior
systems for automobiles. Our commitment to sustainability dates
back to our roots in 1885, with the invention of the first electric
room thermostat. Through our growth strategies and by increasing
market share we are committed to delivering value to shareholders
and making our customers successful. In 2013, Corporate
Responsibility Magazine recognized Johnson Controls as the #14
company in its annual "100 Best Corporate Citizens" list. For
additional information, please visit
http://www.johnsoncontrols.com.
About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501),
headquartered in Tokyo, Japan, is
a leading global electronics company with approximately 326,000
employees worldwide. The company's consolidated revenues for fiscal
2012 (ended March 31, 2013) totaled
9,041 billion yen ($96.1 billion). Hitachi is focusing more than
ever on the Social Innovation Business, which includes
infrastructure systems, information & telecommunication
systems, power systems, construction machinery, high functional
material & components, automotive systems and others.
For more information on Hitachi, please visit the company's
website at http://www.hitachi.com.
About Hitachi Appliances, Inc.
Hitachi
Appliances, Inc., headquartered in Tokyo, was established in April 1, 2006, through the merger of Hitachi Air
Conditioning Systems Co., Ltd. and Hitachi
Home & Life Solutions, Inc. that were both wholly owned
by Hitachi, Ltd. Its consolidated sales for fiscal year ended
March 31, 2013, totaled 569 billion yen (approximately $6.0 billion). The company supplies
eco-friendly, comfortable home appliances and air conditioning
products around the world capitalizing on its cutting-edge
technologies.
For more information on Hitachi Appliances, please visit
http://www.hitachi-ap.com/index.html
FORWARD-LOOKING STATEMENTS
Johnson Controls, Inc. and Hitachi, Ltd. have made statements in
this document that are forward-looking and, therefore, are subject
to risks and uncertainties. All statements in this document other
than statements of historical fact are statements that are, or
could be, deemed "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. In this
document, statements regarding future financial position, sales,
costs, earnings, cash flows, other measures of results of
operations, capital expenditures or debt levels and plans,
objectives, outlook, targets, guidance or goals are forward-looking
statements. Words such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "believe," "should," "forecast,"
"project" or "plan" or terms of similar meaning are also generally
intended to identify forward-looking statements. Johnson Controls
and Hitachi caution that these statements are subject to numerous
important risks, uncertainties, assumptions and other factors, some
of which are beyond Johnson Controls' and Hitachi's control, that
could cause Johnson Controls' and Hitachi's actual results to
differ materially from those expressed or implied by such
forward-looking statements. These factors include the ability to
negotiate and enter into a definitive joint venture agreement and
the receipt of all necessary government and other approvals, and
the satisfaction of any closing conditions, relating to the
creation of the joint venture, as well as other factors discussed
in Item 1A of Part I of Johnson Controls' most recent Annual Report
on Form 10-K for the year ended September
30, 2013. Shareholders, potential investors and others
should consider these factors in evaluating the forward-looking
statements and should not place undue reliance on such statements.
The forward-looking statements included in this document are only
made as of the date of this document, and Johnson Controls and
Hitachi assume no obligation, and disclaims any obligation, to
update forward-looking statements to reflect events or
circumstances occurring after the date of this document.
Johnson Controls Contact:
Fraser Engerman
Director, Global Media Relations
+1 414 524 2733
fraser.engerman@jci.com
Johnson Controls Contact in Japan:
Nozomu "Bobby" Fukuda
Hakuhodo, Inc.
+81-3-6441-4454
NOZOMU.FUKUDA@hakuhodo.co.jp
Hitachi, Ltd. Contact:
Hiroshi Inami
Manager, Public Relations and Investor Relations Deparment
hiroshi.inami.tf@hitachi.com
+81-3-5208-9325
Hitachi Appliance, Inc. Contact:
Kantaro Tanii
Senior Manager, Corporate Communications Department
kantaro.tanii.gx@hitachi.com
+81-3-3506-1476
SOURCE Johnson Controls, Inc.