The variable refrigerant flow (VRF) market in the U.S. just got a bit more interesting. Johnson Controls, Hitachi, Ltd., and Hitachi Appliances announced the companies have completed their global joint venture agreement and will immediately begin operations of Johnson Controls-Hitachi Air Conditioning.
The two companies have been partnering for a while, but this announcement solidifies that relationship. Simply put, Hitachi has a business built around HVAC, and they are carving that business out and making it a separate entity. Johnson Controls is buying 60 percent of that business and creating a joint venture with Hitachi Appliances retaining ownership of the remaining 40 percent. The new business is valued at around $2.8 billion.