Ingersoll Rand and Mitsubishi Electric Corp. Establish Joint Venture

Ingersoll-Rand plc and Mitsubishi Electric Corp. 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 joint venture will include marketing, sales and distribution of ductless and VRF heating and air conditioning systems through the Ingersoll Rand Trane and American Standard commercial and residential channels, and existing Mitsubishi Electric distributors and representatives in the U.S. and select countries in Latin America.

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.

“We are pleased to enter into a joint venture with Mitsubishi Electric U.S.,” says David Regnery, executive vice president of Ingersoll Rand. “The value of the joint venture is the pairing of systems, distribution, technical, product and applications expertise, and allows us to leverage the Ingersoll Rand service capability.”

“Mitsubishi Electric is enthusiastic about establishing a successful partnership with Ingersoll Rand,” says Keijiro Hora, president and CEO of Mitsubishi Electric U.S. Inc. “The strength of our brands, combined with our product expertise, industry knowledge and channel coverage will result in a great offering for customers.”

The joint venture will be a provider of ductless and VRF systems in the U.S. and select countries in Latin America. It will bring together Ingersoll Rand leadership in heating and air conditioning and its Trane and American Standard residential and commercial distribution network with the Mitsubishi Electric mini-split, multi-split, and VRF products, recognized brand and channel expertise.

Pending favorable global antitrust reviews and customary closing conditions, the 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. Ingersoll Randand Mitsubishi Electric US Inc., a subsidiary of Mitsubishi Electric Corp., will have equal ownership. The financial terms of the deal were not disclosed and are not material.

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