Samsung, Lennox Announce Plans for Joint Venture
RIDGEFIELD PARK, N.J. — Samsung Electronics Co. Ltd. and Lennox have agreed to form a joint venture to sell ductless HVAC systems in the U.S. and Canada.
The joint venture brings together Samsung, a global brand with a 40-year history in HVAC technology, and Lennox, a North American OEM and a leader in direct distribution, in a partnership that will provide outstanding heating and cooling solutions, a press release from Samsung said.
Samsung will own 50.1% of the joint venture, Samsung Lennox HVAC North America, and Lennox will own the remaining 49.9%, the press release said.
“It is a great pleasure to take the first step in creating a long-term HVAC-industry-leading partnership with Lennox,” said KS Choi, president and CEO of Samsung Electronics America. “Our collaboration, focused on strong product offerings and customer networks in the growing ductless segment, will bring new solutions to the market. We look forward to launching innovative technologies together in the future.”
The joint venture will distribute Samsung ductless products in the U.S. and Canada as well as products branded “Lennox powered by Samsung,” which will be sold through Lennox stores and its direct-to-dealer network. The joint venture will continue to supply Samsung-branded products to the current Samsung HVAC distributors and representatives in the U.S. and Canada.
Samsung expects the partnership will help the company strengthen its position in the North American HVAC market by adding Lennox’s distribution channels, while Lennox is expected to reinforce its business by adding Samsung ductless systems to its product lineup, the press release said.
Through this partnership, Samsung plans to leverage its experience in artificial intelligence, software, smartphones, and semiconductors to provide more smart home services with Samsung SmartThings’ easy device connection and control for a smarter lifestyle and seamless experience, the press release said. With SmartThings Energy, users can monitor overall power consumption within the household, while the SmartThings Energy's AI Energy Mode can help cut the energy consumption of connected home appliances.
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“This joint venture represents the union of two outstanding brands with strong market positions and deep customer trust. It is an honor to work with Samsung as we invest in solutions to meet our customers' HVAC needs,” said Alok Maskara, CEO at Lennox. “I am excited about the future of this joint venture as part of our growth strategy.”
Pending customary closing conditions, the joint venture is expected to be operational in the second half of 2024. Samsung and Lennox will appoint the joint venture’s CEO and CFO, and the business headquarters and operations will be based in Roanoke, Texas.
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