MILWAUKEE – Johnson Controls on Wednesday announced it
has reached a definitive agreement with the Canada
Pension Plan Investment Board to acquire its Air
Distribution Technologies business for $1.6 billion.
Air Distribution Technologies is one of the strongest
and largest independent providers of air distribution
and ventilation products in North America, according to
a Johnson Controls statement.
"This investment expands Johnson Controls' position in
the buildings space with additional products that are
complementary to our existing heating, ventilation and
air conditioning offerings," said Alex Molinaroli,
Johnson Controls chairman and chief executive officer.
"It reflects our stated commitment to invest in the
buildings business as a growth platform and further
enhances our offerings and channels.”
The acquisition is subject to limited conditions and is
expected to close by the end of July, according to the
statement. Johnson Controls was advised by Goldman Sachs
on strategic and financial aspects, and Cleary Gottlieb
Steen & Hamilton were the company’s legal
representatives for the transaction.
Air Distribution Technologies produces a broad range of
air distribution products under brands such as Ruskin,
Titus, Hart & Cooley, Krueger, PennBarry and Tuttle &
Within the Johnson Controls portfolio, Air Distribution
Technologies will be aligned under the building
efficiency platform where it will operate with its own
brands, distribution channels and employees.