Samsung and Lennox form a joint venture for North American HVAC solutions

Samsung Electronics and Lennox have formed a joint venture to provide heating and cooling solutions in North America. The joint venture aims to strengthen the residential and homebuilder businesses.

Samsung Electronics announced a joint venture with Lennox, a leading provider of innovative climate solutions in the HVACR industry, to provide ductless HVAC systems in the United States and Canada.

Samsung and Lennox have formed a joint venture to provide heating and cooling solutions in North America. Samsung, a global brand with 40 years of innovative HVAC technology, will own 50.1 percent of Samsung Lennox HVAC North America, while Lennox will own 49.9 percent. This partnership aims to offer customers both ducted and ductless systems, enhancing their product offerings.

KS Choi, President and Chief Executive Officer of Samsung Electronics North America, said, “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 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 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 thinks the joint venture will aid the firm enhance its position in the North American HVAC sector by purchasing Lennox’s distribution networks, while Lennox wants to boost its business by increasing Samsung’s product variety of innovative ductless systems.

Samsung intends to use its leadership in artificial intelligence, software, smartphones, and semiconductors to offer additional smart home services, including Samsung SmartThings’ simple device connection and control for a better living and seamless experience. SmartThings Energy allows users to monitor overall household power use, and its AI Energy Mode helps connected home equipment save energy.

Based on innovative products exclusively from the joint venture and via the growth of distribution channels, Samsung Lennox HVAC North America wants to strengthen its residential and homebuilder business in North America. Furthermore, Samsung and Lennox will continue to pursue further partnership possibilities and cooperation with homebuilders across multiple product categories from house appliances to TV, as well as in device components and technology.

Alok Maskara, Lennox Chief Executive Officer, said, “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.” “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.