Panasonic Corporation has acquired Hussmann Corporation, a Missouri-based manufacturer of refrigerated display cases and systems.
Panasonic has signed an agreement with Hussmann Parent Inc., the Delaware-based parent of Hussmann, and Clayton, Dubilier & Rice, LLC in New York, the representative of shareholders of Hussmann Parent, for Panasonic Group to acquire 100% of the shares of Hussmann Group including Hussmann Corporation in April of 2016. This agreement will allow Panasonic to expand its display case business and food distribution solutions business in the United States, the biggest market for refrigerated and freezer display cases, as well as countries and regions around the U.S. and further to Australia and New Zealand.
As part of its growth strategy, Panasonic is looking to generate sales of 2.5 trillion yen in B2B solutions in 2018, of which 300 billion yen is expected to come from the food distribution solutions business. The company has been promoting its energy-efficient and environmentally conscious refrigerated and freezer display cases for supermarkets and convenience stores -- one of its main products in the food distribution solutions business -- mainly in Japan, China and other parts of Asia, and has established its position in those markets. Meanwhile, new approaches have been sought to meet the demands of customers in the U.S.
Hussmann is a market leader in all of their current major markets. In Hussmann's 109 year history, the company has built strong relationships with its customers, and established a globally recognized industry leading brand. Hussmann's strength also lies in its top-level network of installation, maintenance and service sites in the U.S, Mexico and New Zealand markets.
This strategic acquisition will enable the combination of Hussmann's strengths in customer relationship, maintenance and services with Panasonic's wide-ranging technology and product lineup. Panasonic will use this synergy to drive growth and further innovation on a global basis. Combined the company will be able to leverage core refrigeration product technology and case platforms including Panasonic's CO2 systems and foodservice products. Other synergy opportunities include LED's, remote monitoring and other technology platforms enhance retail customer's merchandising and consumer connectivity.
Panasonic will use its own funds to acquire Hussmann for $1.545 billion dollars (approximately 185.4 billion yen). After the transaction, which is expected to be completed on April 1st of 2016, Panasonic Group will own 100% of Hussmann's shares. The completion of this acquisition is subject to approval from competition authorities in the United States and other countries as required by law.
Hussmann will serve as the base of Panasonic's food distribution business in North America and its major markets. Hussmann's current management team will stay in place to manage the acquired company under Panasonic's guidance. The Hussmann name and brand will continue to be used.