Ingersoll-Rand plc (NYSE:IR) and Mitsubishi Electric Corporation (TOKYO: 6503) are pleased to announce they have entered into an agreement 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 air conditioning systems through Ingersoll Rand’s Trane and American Standard commercial and residential channels, and existing Mitsubishi Electricdistributors and representatives in the United States and select countries in Latin America.
The systems sold by the joint venture will be highly efficient, variable-speed mini-split, multi-split, and VRF air conditioners and 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 US distributors 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 in the multi-billion dollar and growing ductless segment will be superior. The unique value of the joint venture is the pairing of premium systems, extensive distribution, deep technical, product and applications expertise, and allows us to leverage Ingersoll Rand’s vast service capability.”
The joint venture will be a leading provider of ductless and VRF systems in the United States and select countries in Latin America.
“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.”
It will bring together Ingersoll Rand’s leadership in heating and air conditioning and its extensive Trane and American Standard residential and commercial distribution network with Mitsubishi 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 is expected to be operational in the first half of 2018. A chief executive officer will be named from Mitsubishi Electric, a chief financial officer will be named from Ingersoll Rand, and the business will operate from headquarters in Suwanee, Georgia. Ingersoll Randand Mitsubishi Electric US, Inc., a subsidiary of Mitsubishi Electric Corporation, will have equal ownership. The financial terms of the deal were not disclosed and are not material.
