Bosch, Lennox, Samsung vie for Johnson Controls HVAC assets, sources say
Reuters
Published Mar 23, 2024 00:37
Updated Mar 23, 2024 16:46
(This March 22 story has been refiled to remove an extraneous word in paragraph 2)
By David Carnevali
NEW YORK (Reuters) - Robert Bosch GmbH, Lennox International and Samsung Electronics (LON:0593xq) are among the industrial firms competing to acquire heating and ventilation assets worth over $6 billion from Johnson Controls (NYSE:JCI) International, people familiar with the matter said on Friday.
Milwaukee-based Johnson Controls has been working with its advisers to sell its residential and light commercial businesses, including a U.S. business and a 60% stake in an air-conditioning venture with Japan's Hitachi called Johnson Controls–Hitachi Air Conditioning, the sources said, requesting anonymity as the discussions are confidential.
The sources said other bidders could emerge, and any deal, if one emerges at all, is still months away.
“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," a Johnson Controls spokesperson said, reiterating comments the company made during 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 maximize value to our shareholders."
Bosch, Lennox and Samsung did not immediately respond to requests for comment.
Johnson Controls has been attempting to divest the portfolio of heating and ventilation assets as part of its efforts to jettison non-core 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.
Johnson Controls' shares, which have risen about 12% so far this year, closed at $63.75 on Friday, giving the company a market capitalization of about $43 billion.
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