Published April 16, 2014
Johnson Controls (JCI) said Wednesday it agreed to a $1.6 billion deal to buy Air Distribution Technologies from the Canada Pension Plan Investment Board, adding to the diversified manufacturer’s ventilation business.
Air Distribution Technologies, which owns the Hart & Cooley, Ruskin and Titus brands, makes ventilation systems for residential and commercial buildings in North America.
Milwaukee-based Johnson Controls said the deal, which is expected to close in July, will complement its current heating, air conditioning and ventilation offerings.
“It reflects our stated commitment to invest in the buildings business as a growth platform and further enhances our offerings and channels,” Alex Molinaroli, Johnson Controls’ chairman and CEO, said in a statement.
Air Distribution Technologies, which is based in Texas, will be aligned under Johnson Controls’ building efficiency segment.
According to Johnson Controls, it already provides product and services that increase energy efficiency in buildings for more than one million customers.
Johnson Controls is turning its attention to more profitable units, and as part of that plan, the company has been exiting its various automotive businesses.
In January, Johnson Controls sold the last piece of its auto electronics business to Visteon (VC) for $265 million, after selling most of the business to Gentex (GNTX) for $700 million. The company also plans to sell its auto interiors unit, which makes sun visors and headliners, to private equity firm Atlas Holdings.
Shares of Johnson Controls rallied 1.7% to $46.73 in recent trading.