Bosch, Lennox and Samsung vie for ventilation group
Robert Bosch GmbH, Lennox International and Samsung Electronics are among industrial groups competing to acquire heating and ventilation assets worth more than $6bn from Johnson Controls International, insiders said on Friday.
Milwaukee-based Johnson Controls has been working with its advisers to sell its residential and light commercial businesses, including a US business and a 60% stake in an air-conditioning venture with Japan’s Hitachi called Johnson Controls — Hitachi Air Conditioning, said the sources. Other bidders could emerge, and any deal is still months away, they said.
“As we continue to focus on simplifying the company, we are always assessing opportunities to advance our transformation into a comprehensive solutions provider for commercial buildings,” said a Johnson Controls spokesperson, reiterating comments the company made in a recent investor call. “As part of the continuous evaluation of our portfolio, we are in the early stages of pursuing strategic alternatives of our noncommercial product lines in line with our objective to maximise value to our shareholders.”
Bosch, Lennox and Samsung did not immediately respond to requests for comment.
Johnson Controls has been trying to divest the portfolio of heating and ventilation assets as part of its efforts to jettison noncore businesses. Founded in 1885, Johnson Controls makes a wide range of appliances and equipment for commercial buildings, as well as home comfort appliances. It provides electronic systems for offices, schools and hospitals in areas such as ventilation, security and fire detection.
The Johnson Controls share price is up about 12% so far this year. It was $63.75 at the close on Friday, valuing the company at about $43bn.