Johnson Controls completes sale of residential and light commercial HVAC business

Johnson Controls, a global leader for smart, safe, healthy and sustainable buildings, today announced it has completed the sale of its Residential and Light Commercial (R&LC) HVAC business in an all-cash transaction to the Bosch Group.
 
"The completion of this transaction is an important milestone for Johnson Controls and positions our company as a leading pure-play provider of innovative building solutions," said CEO Joakim Weidemanis. "Johnson Controls is embarking on its next era, and I'm confident in our ability to reach our full potential as a faster-growing, more profitable, technology-based and service-enabled company. I look forward to the journey ahead as we transform our industry for years to come and work together to deliver even greater value for our customers, team members and shareholders."
 
Weidemanis continued, "I want to thank the Residential and Light Commercial HVAC team for their service and dedication and wish them the best of success as they join the Bosch Group."
 
As previously announced, the total transaction is valued at $8.1 billion and the company's portion of the consideration is approximately $6.7 billion. Net cash proceeds to Johnson Controls were approximately $5.0 billion after tax and transaction-related expenses.
 
The transaction includes the North America ducted business as well as the global residential joint venture with Hitachi, Ltd. As part of the transaction, Hitachi has retained certain ductless HVAC assets located in Shimizu, Japan.
 
Consistent with its capital allocation policy, Johnson Controls expects to return a portion of the net proceeds of the transaction to shareholders through the implementation of a $5.0 billion accelerated share repurchase program expected to commence in the coming weeks pursuant to its previously announced share repurchase authorization (with current overall availability of $9.8 billion).