Lennox International Inc. and Samsung have announced the establishment of a joint venture named Samsung Lennox HVAC North America to sell ductless mini split, air conditioning (AC), heat pump, and variable refrigerant flow (VRF) products in the United States and Canada.
Joint Venture Details
Samsung will hold a 50.1% ownership stake in the joint venture, while Lennox will own the remaining 49.9%. The collaboration aims to leverage Samsung's 40 years of innovative HVAC technology and Lennox's strong market position as a leading North American HVAC original equipment manufacturer (OEM) and direct distribution leader.
Market Synergy
The joint venture will combine ducted and ductless AC and heat pump systems, enhancing the synergies for customers by offering a comprehensive range of HVAC solutions. Lennox will sell "Lennox powered by Samsung" branded products through its stores and direct-to-dealer network, while continuing to supply Samsung-branded products to existing Samsung HVAC distributors and representatives in the United States and Canada.
Leadership Statements
"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 Lennox Chief Executive Officer, Alok Maskara. "I am excited about the future of this joint venture as part of our growth strategy."
"It is a great pleasure to take the first step in creating a long-term HVAC industry-leading partnership with Lennox," stated KS Choi, President and Chief Executive Officer of Samsung Electronics America. "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."
Operational Timeline
The joint venture is expected to become operational in the second half of 2024, pending customary closing conditions. Following this, Lennox will purchase VRF and low-GWP mini-split and multi-split products from the joint venture. Samsung and Lennox will appoint the Chief Executive Officer and Chief Financial Officer for the joint venture, with business headquarters and operations based in Roanoke, Texas.
