Lennox and Samsung form US joint venture
28th May 2024USA: US manufacturer Lennox and Korean company Samsung have formed an HVAC joint venture to sell ductless AC and heat pump (mini-split, multi-split, VRF) products in the United States and Canada.
The joint venture, called Samsung Lennox HVAC North America, will be 50.1% owned by Samsung with Lennox owning 49.9%.
“This joint venture represents the union of two outstanding brands with strong market positions and deep customer trust. It is an honour to work with Samsung as we invest in solutions to meet our customers’ HVAC needs,” stated Lennox CEO Alok Maskara.
The joint venture will be distributing Samsung ductless AC and heat pump products in the United States and Canada as well as “Lennox powered by Samsung”-branded products for Lennox, which will be sold through Lennox stores and direct-to-dealer network.
The joint venture will continue to supply Samsung-branded products to the existing Samsung HVAC distributors and representatives in the United States and Canada.
Describing the deal as “a long-term HVAC industry-leading partnership with Lennox”, Samsung Electronics America president and CEO, KS Choi, said: “Our collaboration, focused on advanced HVAC 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.”
Pending customary closing conditions, the new joint venture is expected to be operational in the second half of this year; after which, Lennox will purchase VRF, and low-GWP mini-split and multi-split products from the joint venture.
Samsung and Lennox will appoint the joint venture’s CEO and CFO, and the business headquarters and operations will be based in Roanoke, Texas.