Johnson Controls International Plc (JCI) sold its residential and light commercial HVAC business to Germany-based engineering and technology firm Bosch for a total consideration of $8.1 billion.
The agreement includes Johnson Controls’ North American Ducted business plus the global residential joint venture with Hitachi, of which Johnson Controls owns a 60% stake. Johnson Controls said that it would receive about $6.7 billion in the deal.”
The provider of building products and systems said that with the agreement its “portfolio will be substantially simplified with enhanced strategic focus, aligned with the Company’s objective to be a pure-play provider of comprehensive solutions for commercial buildings.”
The company added that the move represented “a significant portion of the Company’s previously announced strategic evaluation of non-core product lines.”
Chief executive Officer George Oliver said the sale positions Johnson Controls as a simpler, higher-growth company. It is expected to close in the next 12 months.
In addition, Johnson Controls …