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JCI to Acquire Air Distribution Technologies in $1.6B Deal

The acquired company is one of the strongest and largest independent providers of air distribution and ventilation products in North America.

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MILWAUKEE — Johnson Controls Inc. (JCI) announced this week it has struck a deal with the Canada Pension Plan Investment Board (CPPIB) to acquire Air Distribution Technologies, a leading independent provider of air distribution and ventilation products in North America, for $1.6 billion.

In a press statement, JCI says the acquisition reflects its commitment to invest in the buildings business as a growth platform.

“This investment expands Johnson Controls’ position in the buildings space with additional products that are complementary to our existing heating, ventilation and air conditioning offerings,” says JCI CEO Alex Molinaroli.

CPPIB had acquired Dallas-based Air Distribution business from Tomkins in 2012 for $1.1 billion, of which about $500 million was funded with equity from CPPIB, according to Reuters.

Upon closing of the proposed deal with JCI, CPPIB expects to receive proceeds of about $1 billion.

The transaction comes just days after CPPIB and Canadian private equity firm Onex Corp. agreed to sell industrial conglomerate Gates Corp. to private equity firm Blackstone Group LP for $5.4 billion.

Auto-parts and building-products maker Gates is a division of Tomkins, which Onex and CPPIB jointly bought in 2010 for about $5 billion. That sale is also expected to close later this year, the companies said in early April.

The sale of Air Distribution Technologies remains subject to customary closing conditions and regulatory approvals.

JCI was advised by Goldman Sachs on strategic and financial aspects of the acquisition.

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Business Management · Systems Integration · News · Acquisitions · Johnson Controls · All Topics