Johnson Controls, Hitachi and Hitachi Appliances entered into an agreement for their joint venture (JV) while at the World Economic Forum in Davos.
The new Johnson Controls-Hitachi JV will allow both companies to deliver a diverse technology portfolio in the heating, ventilation, air conditioning and refrigeration industry.
Through the agreement, Johnson Controls will obtain a 60% stake in Hitachi Appliances.
Its customers will be able to access a full range of air conditioning products, including variable refrigerant flow technology, inverter technology-based room air conditioners and absorption chillers on top of its existing products.
The transaction is expected to close later this year, subject to regulatory approvals and satisfaction of other customary conditions.
“For Johnson Controls, this partnership reflects our strategic commitment to our buildings business as a growth platform,” said chief executive Alex Molinaroli. “The JV will propel us forward with superior products, enabling [us] to deliver the most diverse technology portfolio in the industry to meet customer demands across the changing global marketplace.”