Johnson Controls: Sale of Residential, Light Commercial Businesses to Bosch Announced

Johnson Controls announced it has entered into a definitive agreement to sell its residential and light commercial heating, ventilation, and air conditioning businesses to the Bosch Group for $8.1 billion. This deal includes the Johnson Controls-Hitachi residential HVAC joint venture, of which Johnson Controls has a 60% ownership stake. Johnson Controls’ portion of the sale price is $6.7 billion: $4.6 billion for its North America R&LC business (or 16.7 times 2023 EBITDA) and $2.1 billion for its joint-venture ownership stake (or 7.5 times 2023 EBITDA). These businesses generated sales of approximately $4.5 billion in fiscal 2023, or roughly 17% of consolidated revenue. Management expects net proceeds of approximately $5 billion after taxes and transaction expenses, and it expects the deal to close in about 12 months.