Samsung and Lennox Announce Joint Venture for Ductless HVAC Systems

Samsung Electronics announced that it has agreed to form a joint venture with Lennox to sell ductless HVAC systems in the United States and Canada.

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 percent of the joint venture, Samsung Lennox HVAC North America, and Lennox will own the remaining 49.9 percent.

“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 chief executive officer of Samsung Electronics North America.

 

Distribution Channels

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 expects the joint venture will help the company 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 the app, users can monitor overall power consumption within the household, while the AI Energy Mode helps save energy consumption of connected home appliances.

 

SmartThings Home

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 Chief Executive Officer.

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.