Johnson Controls To Divest Residential And Light Commercial HVAC Businesses In $8.1B Deal With Bosch
Portfolio Pulse from Benzinga Newsdesk
Johnson Controls (JCI) is divesting its residential and light commercial HVAC businesses to Bosch in a deal valued at $8.1 billion. This move is part of JCI's strategy to become a pure-play provider of comprehensive solutions for commercial buildings. JCI's portion of the consideration is approximately $6.7 billion. The transaction includes the North America Ducted business and a global residential joint venture with Hitachi, where JCI owns 60%. Hitachi will retain certain ductless HVAC assets in Japan.
July 23, 2024 | 8:06 am
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Johnson Controls is divesting its residential and light commercial HVAC businesses to Bosch for $8.1 billion. This move is part of JCI's strategy to focus on commercial buildings, and the company will receive approximately $6.7 billion from the transaction.
The divestiture allows Johnson Controls to focus on its core business of providing comprehensive solutions for commercial buildings. The $6.7 billion consideration will likely strengthen JCI's financial position and could be used for further investments or debt reduction, positively impacting its stock price in the short term.
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