SWORDS, Ireland & TOKYO--(BUSINESS WIRE)--
Ingersoll-Rand plc (NYSE:IR), a world leader in creating comfortable,
sustainable and efficient environments, and Mitsubishi Electric
Corporation (TOKYO: 6503), a leading manufacturer of technologically
advanced ductless and variable refrigerant flow (VRF) heating and air
conditioning systems, 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 Electric distributors 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.”
“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.”
The joint venture will be a leading provider of ductless and VRF systems
in the United States and select countries in Latin America. 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 Rand and 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.
About Ingersoll Rand
Ingersoll Rand (NYSE:IR) advances the quality of life by creating
comfortable, sustainable and efficient environments. Our people and our
family of brands — including Club
Car®, Ingersoll
Rand®, Thermo
King® and Trane® —
work together to enhance the quality and comfort of air in homes and
buildings; transport and protect food and perishables; and increase
industrial productivity and efficiency. We are a $14 billion global
business committed to a world of sustainable progress and enduring
results. For more information, visit ingersollrand.com.
Ingersoll Rand: Forward-Looking Statements
This news release includes "forward-looking statements," which are
statements that are not historical facts, including, but not limited to,
statements that relate to our intent to form a joint venture with
Mitsubishi Electric, the expected benefits of the proposed joint
venture; the timing of the commencement of operations of the joint
venture, and projected size, scale and success of the joint venture. The
forward-looking statements in this news release are based on current
expectations and assumptions that are subject to risks and
uncertainties, many of which are outside of our control, and could cause
results to materially differ from expectations. Such risks and
uncertainties, include, but are not limited to: Ingersoll Rand’s ability
to timely obtain, if ever, necessary regulatory approvals of the
proposed joint venture; the ability to fully realize the expected
benefits of the joint venture; and/or business conditions that may
impact the companies in connection with the proposed joint venture.
Additional factors that could cause such differences can be found in our
Form 10-K for the year ended December 31, 2016, and subsequent reports
on Form 10-Q and other SEC filings. Ingersoll Rand assumes no obligation
to update these forward-looking statements.
About Mitsubishi Electric Corporation
With over 90 years of experience in providing reliable, high-quality
products, Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized
world leader in the manufacture, marketing and sales of electrical and
electronic equipment used in information processing and communications,
space development and satellite communications, consumer electronics,
industrial technology, energy, transportation and building equipment.
Embracing the spirit of its corporate statement, Changes for the Better,
and its environmental statement, Eco Changes, Mitsubishi Electric
endeavors to be a global, leading green company, enriching society with
technology. The company recorded consolidated group sales of 4,238.6
billion yen (US$ 37.8 billion*) in the fiscal year ended March 31, 2017.
For more information visit:www.MitsubishiElectric.com.
*At an exchange rate of 112 yen to the US dollar, the rate given by
the Tokyo Foreign Exchange Market on March 31, 2017
About Mitsubishi Electric US, Inc
Mitsubishi Electric US, Inc., a U.S. affiliate company of Mitsubishi
Electric Corporation, manufactures and markets heating and
air-conditioning systems, elevators and escalators, data wall cubes, LCD
digital signage monitors, industrial printers, professional photo
printers and semiconductor devices. For additional information visit http://us.mitsubishielectric.com/en.
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Source: Ingersoll-Rand plc