Ingersoll Rand & Mitsubishi Electric to Establish JV
Ingersoll-Rand, a world leader increating comfortable, sustainable and efficient environments, and Mitsubishi Electric Corporation, a leading manufacturer of technologically advanced ductless and variable refrigerantflow (VRF) heating and air conditioning systems, are pleased to announce they have entered into anagreement to establish a 50 percent-50 percent joint venture (JV) pending global antitrust review.
The new joint venture will include marketing, sales and distribution of ductless and VRF heating and airconditioning systems through Ingersoll Rand’s Trane and American Standard commercial and residentialchannels, and existing Mitsubishi Electric distributors and representatives in the United States and selectcountries in Latin America.
The systems sold by the joint venture will be highly efficient, variable-speed mini-split, multi-split, and VRFair conditioners and heat pumps for homes, light commercial and commercial applications. The jointventure will distribute Trane or American Standard branded products with the Mitsubishi Electric corporatelogo to Ingersoll Rand channels. The joint venture also will continue to serve Mitsubishi Electric USdistributors and representatives with Mitsubishi Electric branded product.
“We are pleased to enter into a new joint venture with Mitsubishi Electric US,” said David Regnery,executive vice president of Ingersoll Rand. “Together, our robust offering and ability to serve customers inthe multi-billion dollar and growing ductless segment will be superior. The unique value of the jointventure is the pairing of premium systems, extensive distribution, deep technical, product andapplications expertise, and allows us to leverage Ingersoll Rand’s vast service capability.”
“Mitsubishi Electric is enthusiastic about establishing 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 will result in a superior offering for customers.” The joint venture will be a leading provider of ductless and VRF systems in the United States and selectcountries in Latin America. It will bring together Ingersoll Rand’s leadership in heating and air conditioningand its extensive Trane and American Standard residential and commercial distribution network withMitsubishi Electric’s innovative and technologically advanced mini-split, multi-split, and VRF products,recognized brand and channel expertise.
Pending favorable global antitrust reviews and customary closing conditions, the new joint venture isexpected to be operational in the first half of 2018. A chief executive officer will be named from MitsubishiElectric, a chief financial officer will be named from Ingersoll Rand, and the business will operate fromheadquarters in Suwanee, Georgia. Ingersoll Rand and Mitsubishi Electric US, Inc., a subsidiary ofMitsubishi Electric Corporation, will have equal ownership. The financial terms of the deal were notdisclosed and are not material.