Bosch Acquires Johnson Controls' HVAC Business in $8.1 Billion Deal
5 Sources
[1]
Bosch acquires residential and light commercial HVAC business from Johnson Controls and Hitachi
Bosch chairman Stefan Hartung: "Biggest transaction in Bosch history and important milestone in the implementation of our corporate strategy for 2030." Bosch deputy chairman Christian Fischer: "Acquired entities will strengthen Home Comfort in an extremely attractive segment, and will become part
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Johnson Controls to Sell Residential and Light Commercial HVAC Businesses
Divestiture Advances Johnson Controls' Transformation into a Pure-Play Provider of Comprehensive Solutions for Commercial Buildings Transaction Valued At $8.1 Billion; JCI Consideration of $6.7 Billion Company Provides Preliminary 2024 Third Fiscal Quarter Earnings Update CORK, Ireland, July 23,
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Johnson Controls to Sell Residential and Light Commercial HVAC Businesses By Investing.com
Divestiture Advances Johnson Controls (NYSE:JCI)' Transformation into a Pure-Play Provider of Comprehensive Solutions for Commercial Buildings Transaction Valued At ; JCI Consideration of Company Provides Preliminary 2024 Third Fiscal Quarter Earnings Update , /PRNewswire/ -- Johnson Controls
[4]
Johnson Controls to Sell Residential and Light Commercial HVAC Businesses - Johnson Controls Intl (NYSE:JCI)
Divestiture Advances Johnson Controls' Transformation into a Pure-Play Provider of Comprehensive Solutions for Commercial Buildings Transaction Valued At $8.1 Billion; JCI Consideration of $6.7 Billion Company Provides Preliminary 2024 Third Fiscal Quarter Earnings Update CORK, Ireland, July 23,
[5]
Johnson Controls To Boost Profit Margins With $8.1B Bosch Deal - Johnson Controls Intl (NYSE:JCI)
Proceeds of $5 billion will be used to reduce debt and return funds to shareholders. Johnson Controls International plc JCI shares are trading higher after the company agreed to sell its Residential and Light Commercial (R&LC) HVAC business to the Bosch Group. The total transaction is valued at
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Johnson Controls International plc has agreed to sell its residential and light commercial HVAC business to Bosch for $8.1 billion. This strategic move aims to streamline Johnson Controls' portfolio and boost profit margins.
Deal Overview
Johnson Controls International plc has announced a significant deal to sell its residential and light commercial Heating, Ventilation, and Air Conditioning (HVAC) business to Bosch for $8.1 billion
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. This transaction includes the sale of Johnson Controls' 60% ownership stake in Johnson Controls-Hitachi Air Conditioning, a joint venture with Hitachi2
.Strategic Implications
The divestiture is part of Johnson Controls' strategy to streamline its portfolio and focus on its core building technologies and solutions business
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. This move is expected to enhance the company's profit margins and create value for shareholders. The transaction is anticipated to be accretive to Johnson Controls' adjusted EPS in fiscal year 20254
.Financial Details
The $8.1 billion all-cash transaction represents a multiple of approximately 13x fiscal year 2023 adjusted EBITDA
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. Johnson Controls plans to use the proceeds from the sale to pay down debt, fund share repurchases, and for general corporate purposes4
. The company expects to record a gain on the sale upon closing.Impact on Bosch
For Bosch, this acquisition significantly expands its HVAC portfolio and global presence. The deal includes well-known brands and a strong market position in North America and Asia
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. This move aligns with Bosch's strategy to strengthen its position in the growing market for energy-efficient and sustainable building solutions.Related Stories
Market Reaction
The announcement of the deal has been well-received by the market. Johnson Controls' shares rose by 3.5% in premarket trading following the news
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. Analysts view the transaction positively, noting that it should help Johnson Controls improve its margin profile and focus on its core competencies.Closing and Regulatory Approval
The transaction is expected to close in the next 12 to 18 months, subject to customary closing conditions and regulatory approvals
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. Both companies will continue to operate independently until the closing of the transaction. Johnson Controls has stated that it will work closely with Bosch to ensure a smooth transition for customers, employees, and partners.References
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