Panasonic Announces Acquisition of Hussmann
Will enable Japan-based company to expand U.S. food distribution solutions business
OSAKA, Japan & BRIDGETON, Mo. -- Panasonic Corp. has acquired Bridgeton, Mo.-based Hussmann Corp., a leading manufacturer of refrigerated display cases and systems. Panasonic will use its own funds to acquire Hussmann for $1.545 billion dollars.
Panasonic has signed an agreement with Hussmann Parent Inc., the Delaware-based parent of Hussmann, and Clayton, Dubilier & Rice LLC, the representative of shareholders of Hussmann Parent, for Panasonic Group to acquire 100% of the shares of Hussmann Group including Hussmann 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.
After the transaction, which is expected to be completed on April 1, 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.
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 United States, 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 LEDs, remote monitoring and other technology platforms that enhance retail customer’s merchandising and consumer connectivity.
As part of its growth strategy, Panasonic is looking to generate sales of 2.5 trillion yen ($20.66 billion U.S.) in business-to-business solutions in 2018; it expects 300 billion yen ($24.79 billion U.S.) 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, it has sought new approaches to meet the demands of customers in the United States.
Panasonic, based in Osaka, Japan, is a worldwide leader in the development of diverse electronics technologies and solutions for customers in the consumer electronics, housing, automotive, enterprise solutions and device industries. Since its founding in 1918, the company has expanded globally and now operates 468 subsidiaries and 94 associated companies worldwide.