PRESS RELEASE
RIDGEFIELD PARK, NJ – May 28, 2024 – Samsung Electronics Co., Ltd. today announced that it has agreed to form a joint venture with Lennox (NYSE: LII), a leading provider of innovative climate solutions in the HVACR industry, to sell ductless HVAC systems in the United States and Canada.
As product requirements for ducted and ductless systems move together, the synergies of having both offerings for customers are becoming greater. The joint venture brings together Samsung, a trusted global brand with 40 years of innovative HVAC technology, and Lennox, a North American HVAC original equipment manufacturer (OEM) and direct distribution leader, in a partnership that will provide outstanding heating and cooling solutions to customers.
Samsung will own 50.1% of the joint venture, Samsung Lennox HVAC North America, and Lennox will own the remaining 49.9%.
“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 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.
Samsung expects the joint venture will help the company to strengthen its position in the North American HVAC market by adding Lennox’s distribution channels, while Lennox is expected to reinforce its business by expanding the product lineup of innovative ductless systems from Samsung.
Through this partnership, Samsung plans to leverage its leadership 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. With SmartThings Energy, users can monitor overall power consumption within the household, while SmartThings Energy's AI Energy Mode helps save energy consumption of connected home appliances.
Based on innovative products uniquely from the joint venture and through the expansion of distribution channels, Samsung Lennox HVAC North America aims to strengthen its residential and homebuilder business in North America. Furthermore, Samsung and Lennox will continue to seek more partnership opportunities and collaboration with homebuilders across various product categories from home appliances to TV, as well as in device parts and technology.
“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, Lennox CEO. “I am excited about the future of this joint venture as part of our growth strategy.”
Pending customary closing conditions, the new joint venture is expected to be operational in the second half of 2024. Samsung and Lennox will appoint the joint venture’s Chief Executive Officer and Chief Financial Officer, and the business headquarters and operations will be based in Roanoke, Texas.
About Samsung Electronics Co., Ltd.
Samsung inspires the world and shapes the future with transformative ideas and technologies. The company is redefining the worlds of TVs, smartphones, wearable devices, tablets, home appliances, network systems, and memory, system LSI, foundry and LED solutions, and delivering a seamless connected experience through its SmartThings ecosystem and open collaboration with partners. For the latest news, please visit the Samsung Newsroom at news.samsung.com.
About Samsung HVAC America
Samsung performs in the HVAC industry globally with business operations in 48 countries. Samsung HVAC America is growing the Samsung residential and commercial air conditioning business in the United States and Canada by building, training, and supporting a network of specifying representatives, distributors, and installers. For more information about Samsung HVAC visit www.samsunghvac.com.
About Lennox
Lennox (NYSE: LII) is a leader in energy-efficient climate-control solutions. Dedicated to sustainability and creating comfortable and healthier environments for our residential and commercial customers while reducing their carbon footprint, we lead the field in innovation with our cooling, heating, indoor air quality, and refrigeration systems. Additional information on Lennox is available at www.lennox.com or by contacting [email protected].