Johnson Controls To Boost Profit Margins With $8.1B Bosch Deal
Portfolio Pulse from Lekha Gupta
Johnson Controls International (NYSE:JCI) has agreed to sell its Residential and Light Commercial HVAC business to Bosch Group for $8.1 billion. The deal is expected to enhance profit margins and provide net cash proceeds of around $5.0 billion after taxes and costs. The company plans to use the proceeds to reduce debt and return funds to shareholders. The transaction is expected to close in about 12 months, pending regulatory approvals.
July 23, 2024 | 2:32 pm
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POSITIVE IMPACT
Carbon Collective Climate Solutions U.S. Equity ETF (NASDAQ:CCSO) provides exposure to Johnson Controls, which is selling its HVAC business to Bosch for $8.1 billion. The deal is expected to enhance profit margins and provide net cash proceeds of around $5.0 billion after taxes and costs.
CCSO holds Johnson Controls, which is making a significant move by selling its HVAC business. This transaction is expected to enhance JCI's profit margins and reduce debt, which could positively impact CCSO's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID) provides exposure to Johnson Controls, which is selling its HVAC business to Bosch for $8.1 billion. The deal is expected to enhance profit margins and provide net cash proceeds of around $5.0 billion after taxes and costs.
GRID holds Johnson Controls, which is making a significant move by selling its HVAC business. This transaction is expected to enhance JCI's profit margins and reduce debt, which could positively impact GRID's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Johnson Controls is selling its Residential and Light Commercial HVAC business to Bosch for $8.1 billion. The deal is expected to enhance profit margins and provide net cash proceeds of around $5.0 billion after taxes and costs. The company plans to use the proceeds to reduce debt and return funds to shareholders.
The sale of the HVAC business is a significant move for Johnson Controls, expected to enhance profit margins and provide substantial cash proceeds. The company's plan to reduce debt and return funds to shareholders is likely to be viewed positively by investors.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100