Lennox International (NYSE: LII), the North Texas-based climate control company known for its HVAC and refrigeration systems, is entering the water heater market through a joint venture with Ariston Group (Bloomberg: ARIS IM), a global manufacturer of high-efficiency water heating technologies headquartered in Italy.
The expansion follows a string of announcements by the company in recent months. Lennox was added to the S&P 500 in late 2024, a move that recognized its sustained growth and market performance. Earlier this year, it opened a 1.2 million-square-foot regional distribution center near DFW Airport and added “showcase space” at its Richardson headquarters for the latest residential and commercial products.
The new venture, Ariston Lennox Water Heating North America, will be jointly owned, with Ariston USA holding a 50.1% stake and Lennox holding 49.9%. According to the companies, the collaboration will combine Ariston’s advanced R&D and global manufacturing capabilities with Lennox’s existing U.S. and Canadian distribution networks.
“This joint venture aligns with our strategy to deliver accelerated growth by expanding our product offerings within the residential market,” said Alok Maskara, CEO of Lennox, describing the partnership as one that “will deliver a more complete home comfort experience.”
Lennox CEO Alok Maskara (left) and Ariston Group Executive Chairman Paolo Merloni mark the formation of their new joint venture, Ariston Lennox Water Heating North America. [Photo: Alok Maskara, LinkedIn]
The move adds high-efficiency gas, electric, and heat pump water heaters to Lennox’s product mix. The Lennox-branded water heaters are expected to hit the market in 2026, sold through the company’s stores, its direct-to-dealer network, and Allied distributors. Ariston Group said it will continue selling under its brands to current customers through its Ariston USA subsidiary,
Ariston, listed on Euronext Milan, entered the North American market in 2016 and has built a presence through three acquisitions. The company, which has U.S. headquarters in Rhode Island, operates 29 production sites and 28 R&D centers worldwide.
“This joint venture allows us to add to our existing commercial presence and brands an alliance with a strong partner,” said Paolo Merloni, Ariston’s executive chairman. “We are proud to be the technology provider behind high-efficiency solutions that will carry the Lennox brands.”
The Lennox team, including executives from product management, HVAC, and global sourcing, traveled to Ariston’s Osimo facility in Italy to formally mark the launch earlier in June. The visit included tours of the company’s water heater manufacturing operations and a review of its current technology development pipeline.
Leadership of the new company will be appointed by Ariston Group and Lennox.
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From a new "showcase space" at its Richardson HQ to a new regional distribution center near DFW Airport to a huge national distribution center being built near Fort Worth, Lennox International is ramping up its North Texas footprint. The payoff? Improving "speed-to-market" and driving "long-term value" for its customers.
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