Johnson Controls International plc announced the completion of the sale of its Residential and Light Commercial (R&LC) HVAC business to the Bosch Group in an all-cash transaction valued at $8.1 billion. The company’s portion of the consideration is approximately $6.7 billion, with net cash proceeds of about $5.0 billion after tax and transaction-related expenses.
The transaction covers the North America ducted HVAC business as well as the global residential joint venture with Hitachi, Ltd. Hitachi has retained certain ductless HVAC assets in Shimizu, Japan.
According to Johnson Controls, the company plans to return a portion of the net proceeds to shareholders through a $5.0 billion accelerated share repurchase program. The repurchase is expected to begin in the coming weeks under its existing authorization, which currently totals $9.8 billion.
“The completion of this transaction is an important milestone for Johnson Controls and positions our company as a leading pure-play provider of innovative building solutions,” said CEO Joakim Weidemanis. “I want to thank the Residential and Light Commercial HVAC team for their service and dedication and wish them the best of success as they join the Bosch Group.”
