Johnson Controls International Plc (JCI) has agreed to divest its residential and light commercial HVAC business to Germany’s Bosch Group for $8.1 billion. This transaction encompasses Johnson Controls’ North American Ducted business as well as its global residential joint venture with Hitachi, where Johnson Controls holds a 60% ownership stake. The company is set to receive approximately $6.7 billion from the deal.
This move aligns with Johnson Controls’ strategy to streamline its operations and focus solely on commercial building solutions. According to the company, the sale is a key step in its ongoing strategic review of non-core product lines and will simplify its portfolio, enhancing its strategic focus.
CEO George Oliver stated that this sale will transform Johnson Controls into a more streamlined and growth-oriented enterprise. The deal is expected to be finalized within the next 12 months.
In related news, Johnson Controls has revised its earnings forecast, projecting adjusted earnings per share for the current quarter to exceed its previous estimate of $1.05 to $1.10. The company will release its quarterly results on July 31.
Following the announcement, Johnson Controls’ stock saw a 1.3% decline, trading at $69.30. Nonetheless, the stock has experienced a 21% increase since the beginning of the year.
