Panasonic buys Hussmann

Japanese electronics maker Panasonic Corp. is buying Bridgeton based refrigeration firm Hussmann for $1.5 Billion in a deal. It will leverage Panasonic technology and help it break into the US food distribution industry.

Panasonic like several Japanese peers has been moving away from unprofitable smartphones and plasma television sets, focusing instead on higher margin products, such as high end cold storage, LED lighting and remote monitoring. Panasonic will buy full control of Hussmann from private equity firm Clayton, Dubilier & Rice and industrial group Ingersoll Rand.

Panasonic has said it is targeting 2.5 trillion yen of sales from its offerings for businesses rather than consumers, in 2018, 300 Billion of which will come from food distribution. To date, it has mostly been present in Asia, and has sought ways to break into the United States, the industry largest market. Hussmann, which will become a fully owned subsidiary of Panasonic, has a leading share in the US market, manufacturing and maintaining refrigerated and freezer display cases.