Johnson Controls-Hitachi Air Conditioning Ltd (JCH) has undergone a reorganisation.
It follows news Johnson Controls International has agreed to sell its Residential and Light Commercial (R&LC) HVAC business in an all-cash transaction to Germany-based Robert Bosch GmbH.
The $US8.1 billion transaction includes the North America ducted business and global residential joint venture with Hitachi Ltd, of which Johnson Controls owns 60 per cent and Hitachi 40 per cent.
Hitachi subsidiary, Hitachi Global Life Solutions (GLS), said that together with JCI, they identified Bosch as the best partner to enable further growth of the global air conditioning business due to its footprint in Europe and its track record in the heating business.
Based on this agreement, Hitachi GLS will transfer all its 40 per cent stake in JCH to Bosch for $US1.4 billion.
The new company, with its new shareholder Bosch, will also concurrently enter into a brand license agreement with Hitachi GLS to continue providing Hitachi-branded air conditioning equipment globally.
In addition, Hitachi GLS will acquire JCH’s Shimizu Factory, a development and manufacturing base for commercial air conditioning equipment.
This will enable Hitachi GLS to operate the entire process in Japan, from development and manufacturing to sales and maintenance services, while developing highly competitive products that meet the needs of the market.
The transaction is expected to be close before the end of the first quarter of fiscal year ending 31 March, 2026.
Hitachi GLS will leverage Bosch’s footprint in Europe to strengthen the global rollout of Hitachi-branded air conditioning equipment through Bosch and the new company.
Deputy chair of the board of management at Bosch, Christian Fischer, said the transaction will accelerate the company’s growth, particularly in Japan and Asia.
“JCH and Bosch complement each other perfectly, both regionally and in terms of products,” he said.
David W. Budzinski, president, Residential & Light Commercial, JCI and CEO of JCH, will continue to lead the business through the transaction.
“Together with the Bosch team, we are creating a global scale leader in residential & light commercial air and water technologies,” he said.
“Our combined portfolio of industry leading brands, channels to market, and new technologies create a unique value proposition that delivers on the needs of our customers.”