Panasonic Corp agreed to pay ¥186.6 billion (US$1.5 billion) for US-based maker of refrigeration systems Hussmann to bolster its housing operations and move further away from consumer electronics.
The company plans purchase the parent of Hussmann Corp from private equity fund Clayton, Dubilier and Rice and make it a wholly owned subsidiary, Panasonic yesterday said in a statement in Tokyo. The deal is expected to close in April.
Panasonic president Kazuhiro Tsuga has steered a recovery in the past three years after record losses by moving away from TVs and smartphones to focus on housing, information systems for cars and making batteries with Tesla Motors Inc.
Tsuga has said the Osaka-based company plans ¥200 billion in strategic investments this fiscal year, part of a push to spend ¥1 trillion to reach a goal of ¥10 trillion in revenue by fiscal 2018.
Hussmann makes refrigerators used by supermarkets, including display cases, doors and lighting systems.
After Panasonic posting combined net losses of ¥1.5 trillion in fiscal 2012 and 2013, the company is expecting its third straight annual profit.
Operating income is likely to be ¥430 billion in the year to March next year, the highest profit since 2008, the company said in October.
Panasonic has said it expects sales of ¥2.5 trillion in its business that includes avionics and security systems, about ¥2.1 trillion for automotive components, ¥2 trillion yen for housing and ¥2.3 trillion for household appliances in the year ending March 2018.
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