News
Freshfields advises Hitachi on multibillion dollar HVAC sale to Bosch and simultaneous acquisition of Japan assets
Global law firm Freshfields Bruckhaus Deringer (‘Freshfields’) has advised Hitachi Global Life Solutions, Inc. (‘Hitachi’) on the sale of its 40 per cent stake in Johnson Controls-Hitachi Air Conditioning Holding (UK) Ltd. (‘JCH’), a joint venture between Hitachi and Johnson Controls International plc (‘JCI’), to Robert Bosch GmbH (‘Bosch’).
JCH’s ductless heating, ventilation, and air conditioning (‘HVAC’) business is valued at approximately US$3.5bn; Bosch will pay approximately US$1.4bn for Hitachi’s 40 per cent stake in JCH. Hitachi will simultaneously acquire a key portion of JCH’s current business in Japan.
The transactions will occur in conjunction with JCI’s parallel sale of its ducted HVAC business to Bosch for an additional approximately US$4.5bn. The three interlinked and complex transactions raised significant structuring and sequencing issues, and required detailed negotiations on post-closing licensing and commercial arrangements.
Freshfields acted as both international and Japanese counsel to Hitachi, with close collaboration among our client and our Japanese and US teams to ensure the success of these highly strategic transactions.