Page 14 - Climate Control News magazine March 2022

In Focus
Toshiba has plans to divide into three standalone companies.
Carrier acquires Toshiba’s VRF, HVAC business
CARRIER GLOBAL CORPORATION HAS SIGNED A BINDING AGREEMENT TO ACQUIRE TOSHIBA’S GLOBAL VRF AND LIGHT COMMERCIAL HVAC BUSINESS.
ployees will continue the growth and innovation journey of Toshiba's HVAC business as part of Carrier, benefiting from its unparalleled global reach, strong dealer network and shared history of innovation.
“This is a value-enhancing opportunity for in- vestors, customers and employees,” he said.
Today's announcement builds on Carrier's recent acquisition of Guangdong Giwee Group, a China-based manufacturer of HVAC products, offering a portfolio of high-quality products including VRF and light commercial air conditioners.
The acquisitions also demonstrate the com- pany's commitment to investing in growth, while delivering on Carrier's commitment to in- crease product extensions and broaden geo- graphic coverage. In addition, the acquisition is also another step in Carrier's continuing efforts to simplify its HVAC joint venture structure.
The acquisition is expected to close by the end of Q3, subject to customary closing conditions, including regulatory approvals. Upon closing, Toshiba will retain a five per cent ownership stake in TCC, and Carrier will consolidate over $2 billion in unconsolidated revenue. ✺
THE PLANNED ACQUI- SITION will strengthen Carrier's position in one of the fastest-growing HVAC segments, as well as scale its global VRF product platform with leading and differentiated technology and the addition of a re-
nowned brand to its portfolio.
Established in 1999, the Toshiba Carrier Corpo-
ration (TCC) designs and manufactures flexible, energy-efficient and high-performance VRF and light commercial HVAC systems utilising its own proprietary inverter technology, as well as com- mercial products, compressors and heat pumps.
VRF delivers high-performance heating and cooling through systems that are typically all- electric and highly efficient, consistent with Carrier's sustainability goals to reduce its cus- tomers' carbon footprint by more than one gi- gaton by 2030.
Carrier's acquisition will include all of TCC's advanced research & development centres and global manufacturing operations, strong prod- uct pipeline, and the long-term use of Toshiba's deeply respected and iconic brand.
Carrier chair & CEO, Dave Gitlin, said there is significant growth potential in the global VRF, light commercial and heat pump segments.
“We are excited by the opportunity to expand our business through this strategic acquisition. TCC's proven R&D expertise, strong global brand and talented employees will be tremen- dous additions to Carrier's multi-brand channel strategy," Gitlin said.
"We look forward to offering complementary, high-performance and sustainable solutions to our customers that will help them achieve their environmental goals."
The global market for VRF and light commercial equipment is the fastest growing HVAC equipment segment. Upon close, the acquisition will position Carrier as a VRF leader, more than doubling its sales in the market segment.
Toshiba CEO & president, Satoshi Tsu- nakawa, said it is good news as TCC em-
ABOVE LEFT: Carrier chair & CEO, Dave Gitlin, said there is significant growth potential for VRF.
RIGHT: Toshiba’s reorganisation needs the support of shareholders.
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TOSHIBA’S FUTURE UNDECIDED
The future of the Toshiba Corporation will be decided at an extraordinary general meeting of shareholders to be held later this month.
Toshiba Corporation has announced plans to separate into three standalone companies.
The announcement followed a five month strategic review.
While Toshiba said it has plans in place to complete the reorganisation by 2023, it will need the support of shareholders. A meeting of shareholders is expected by the end of March.
Founded in 1875, the conglomerate has 120,000 employees worldwide and secured annual sales of $US27.5 billion in fiscal year 2020.
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