Ingersoll-Rand and Mitsubishi Electric Corp. announced Jan. 17 that they have entered into an agreement to establish a joint venture for the marketing, sales and distribution of ductless and variable refrigerant flow heating and air conditioning systems through IR’s Trane and American Standard commercial and residential channels, and existing Mitsubishi Electric distributors and representatives in the United States and select countries in Latin America.
Ingersoll Rand and Mitsubishi Electric US will have equal ownership. 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, Ga. The financial terms of the deal were not disclosed.
The systems sold by the joint venture will be 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.
“Together, our robust offering and ability to serve customers in the multi-billion dollar and growing ductless segment will be superior,” said David Regnery, executive vice president of Ingersoll Rand. “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.”
Keijiro Hora, president and CEO of Mitsubishi Electric US, agreed: “The strength of our brands, combined with our product expertise, industry knowledge and channel coverage will result in a superior offering for customers.”