6 new stocks added last week by ProPicks AI are already up by 2.5%. Don't miss the momentum!Get 50% off

Bosch, Lennox, Samsung vie for Johnson Controls HVAC assets, sources say

Published 23/03/2024, 00:37
© Reuters. FILE PHOTO: The logo and trading symbol for Johnson Controls International is displayed on a board on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 16, 2018. REUTERS/Brendan McDermid/File Photo

(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.

© Reuters. FILE PHOTO: The logo and trading symbol for Johnson Controls International is displayed on a board on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 16, 2018. REUTERS/Brendan McDermid/File Photo

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.