Johnson Controls Completes Sale of Residential and Light Commercial HVAC Business

Core Viewpoint - Johnson Controls International plc has completed the sale of its Residential and Light Commercial HVAC business to the Bosch Group for a total transaction value of $8.1 billion, marking a significant step in the company's transformation into a pure-play provider of innovative building solutions [1][2]. Company Overview - Johnson Controls is recognized as a global leader in smart, safe, healthy, and sustainable buildings, focusing on reimagining building performance to benefit people, places, and the planet [9][10]. - The company has a history of 140 years of innovation and offers the largest portfolio of building technology and software, along with service solutions [10]. Transaction Details - The sale includes the North America ducted business and a global residential joint venture with Hitachi, Ltd., while Hitachi retains certain ductless HVAC assets located in Shimizu, Japan [3]. - Johnson Controls' portion of the transaction consideration is approximately $6.7 billion, with net cash proceeds expected to be around $5.0 billion after tax and transaction-related expenses [2]. Future Plans - Following the transaction, Johnson Controls plans to return a portion of the net proceeds to shareholders through a $5.0 billion accelerated share repurchase program, in line with its capital allocation policy [4]. - The company has an overall share repurchase authorization availability of $9.8 billion [4]. Leadership Perspective - CEO Joakim Weidemanis emphasized the transaction as a milestone that positions Johnson Controls for faster growth and increased profitability as a technology-based and service-enabled company [2]. - He expressed gratitude to the Residential and Light Commercial HVAC team for their contributions and wished them success in their new roles at Bosch [2]. Advisory Information - Financial advisors for the transaction included Centerview Partners and Citi, with legal advice from Simpson Thacher and investor relations support from Joele Frank [5].