In a groundbreaking move that is set to transform the HVAC industry, Lennox, a leading provider of innovative climate solutions, and Samsung, a trusted global brand with four decades of cutting-edge HVAC technology, have announced the formation of a joint venture to sell ductless AC and heat pump products in the United States and Canada. The newly established joint venture, named Samsung Lennox HVAC North America, brings together two industry giants, combining their expertise and market presence to deliver unparalleled heating and cooling solutions to customers across the region.
Under the terms of the agreement, Samsung will hold a 50.1% stake in the joint venture, while Lennox will own the remaining 49.9%. This strategic partnership recognizes the growing synergies between ducted and ductless AC and heat pump systems, as product requirements for both segments converge. By joining forces, Samsung and Lennox aim to capitalize on their respective strengths, with Samsung bringing its innovative HVAC technology and global brand recognition, and Lennox contributing its position as a leading North American HVAC original equipment manufacturer (and direct distribution leader.
Alok Maskara, Chief Executive Officer of Lennox, expressed his enthusiasm for the joint venture, stating, "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." Maskara further emphasized the significance of this partnership as part of Lennox's growth strategy, highlighting the exciting prospects that lie ahead for the joint venture.
The joint venture will be responsible for distributing Samsung ductless AC and heat pump products throughout the United States and Canada. Additionally, it will introduce "Lennox powered by Samsung"-branded products, which will be exclusively sold through Lennox stores and its direct-to-dealer network. This strategic move ensures that customers have access to a wide range of advanced HVAC solutions tailored to their specific needs. The joint venture will also continue to supply Samsung-branded products to existing Samsung HVAC distributors and representatives in both countries, maintaining the strong relationships and distribution channels already in place.
KS Choi, President and Chief Executive Officer of Samsung Electronics America, expressed his delight in embarking on this long-term partnership with Lennox, stating, "It is a great pleasure to take the first step in creating a long-term HVAC industry-leading partnership with Lennox. 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." This statement underscores the shared vision and commitment of both companies to drive innovation and deliver cutting-edge HVAC solutions to customers.
The establishment of Samsung Lennox HVAC North America is subject to customary closing conditions and is expected to become operational in the second half of 2024. Once the joint venture is fully operational, Lennox will purchase VRF, low-GWP mini-split, and multi-split products from the joint venture, further expanding its product portfolio and offerings to customers. The joint venture's leadership will be appointed by both Samsung and Lennox, with the Chief Executive Officer and Chief Financial Officer positions being filled by individuals selected by the respective companies. The business headquarters and operations of the joint venture will be based in Roanoke, Texas, strategically positioned to serve the North American market effectively.
