Panasonic to acquire US refrigeration firm Hussmann for $1.5 billion

Panasonic Corp. is getting into the U.S. food distribution business by acquiring a Bridgeton based refrigeration company firm Hussmann Corp. The Japanese electronics maker announced on Monday that it agreed to buy Hussmann, the company that produces refrigerated systems and display cases,  in a $1.54 billion deal.

As reported on Reuters, the Osaka based Panasonic will buy Hussmann from the majority owner private equity firm Clayton, Dubilier & Rice, and industrial group Ingersoll Rand. Hussmann's majority owner currently has a 36.7 percent stake after selling off a stake in 2011.

Panasonic has signed an agreement with Hussmann Parent Inc. to acquire 100 percent of the shares of Husmann Group including Hussmann Corp. in April 2016.

The deal will allow Panasonic to expand its display case business food distribution solutions business in the U.S., the biggest market for refrigerated and freezer display cases. Business Wire reported that Panasonic also plans to expand the business to the countries and regions around the U.S. and further  to Australia and New Zealand.

The acquisition deal is a part of Panasonic's strategy to achieve the target of generating a 2.5 trillion yen sales in business to business solutions in 2018. The company expects 300 billion yen of the B2B sales to come from the food distribution solutions business.

Panasonic has been promoting its energy efficient and environmentally conscious refrigerated and freezer display cases as its main products in the food solutions business, in Asia market including Japan and China. The company has sought new approaches to break into the U.S. market for the business.

Panasonic said in a news release as reported on The Wall Street Journal that the acquisition will enable the combination od Hussmann's strengths in customer relationship, maintenance and services with Panasonic's wide ranging technology and product line up.

Panasonic's Chief Executive Kazuhiro Tsuga said that the company wants to make the acquisition a trigger to accelerate its global business. He said that Panasonic is likely to actively pursue overseas acquisitions.

Hussmann has 5,830 employees and 10 production sites worldwide, including six in the U.S. The Hussmann name and brand will remain after the acquisition. Panasonic will also remain Hussmann's current management team led by the CEO Dennis Gipson. Hussmann wil be the base oprations of Panasonic's food distribution business.

Panasonic has also joined the car maker Tesla Motor Inc. as a part of its efforts in B2B solutions. The company has built a big battery factory in the U.S. to provide batteries for Tesla electric vehicles.