I am pleased to share that Ingersoll Rand has entered into an agreement with Mitsubishi Electric Corporation to establish a joint venture, pending regulatory review and approval, and customary closing conditions.
A joint venture is a business arrangement where two companies pool their resources to achieve a goal. In our case, the joint venture will focus on marketing, selling and supporting variable refrigerant flow (VRF) and ductless heating and air conditioning systems through Trane, American Standard and Mitsubishi channels in the U.S. and select Latin American countries.
VRF and ductless heating and air conditioning systems are highly efficient and flexible, and heat or cool a specific space with minimal, or no, ductwork.
The joint venture brings together premium systems, extensive distribution networks and deep technical, product and applications expertise. We also will be able to leverage and benefit from applying Ingersoll Rand’s vast service capability to this portfolio of products.
Ingersoll Rand and Mitsubishi Electric US, Inc. will have equal ownership in the joint venture, which will operate independently from both companies. A CEO will be named from Mitsubishi Electric and a CFO from Ingersoll Rand. Mitsubishi Electric will transfer employees to the joint venture. Ingersoll Rand channels and sales employees are not part of the joint venture, but will have the ability to sell ductless products through Ingersoll Rand channels.
The joint venture is expected to be operational in the first half of 2018.
Executive Vice President, Ingersoll Rand