SWORDS, Ireland, and TOKYO, Japan – Ingersoll-Rand plc and Mitsubishi Electric Corporation have entered into an agreement to establish a 50-50 joint venture 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 U.S. distributors and representatives with Mitsubishi Electric branded product.
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 CEO 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.