Hitachi, JCI, and Bosch Restructure Air Conditioning Partnership After Bosch Takeover
Germany: Hitachi Global Life Solutions, Inc. (Hitachi GLS) has agreed to transfer its 40% stake in Johnson Controls-Hitachi Air Conditioning Holding (UK) Ltd (JCH) to Bosch for $1.4 billion. The new company, now wholly owned by Bosch, will enter a brand license agreement to continue providing Hitachi-branded air conditioning equipment globally. Hitachi GLS will also acquire JCH's Shimizu Factory to operate the entire process of commercial air conditioning business in Japan. Jun Abe, Executive Vice President of Hitachi, expressed that this agreement aims to leverage Bosch's extensive footprint to enhance Hitachi's global air conditioning business and contribute to sustainable solutions.
Bosch had agreed to acquire Johnson Controls' residential ventilation businesses, including its joint venture with Hitachi, for $8 billion, in what will be the German engineering group's largest takeover to date. This acquisition will significantly boost the company’s sales and strengthen its presence in the United States and Asia. The transaction, funded through cash on Bosch's balance sheet, includes ductless HVAC production sites in Shimizu, Japan, which Hitachi will acquire. Bosch CEO Stefan Hartung highlighted the strategic importance of this acquisition in capitalizing on global efforts to reduce oil and gas heating to cut greenhouse gases. Johnson Controls is expected to receive net proceeds of about $5 billion after tax from the deal.
Source: Hitachi