Johnson Controls to acquire Air Distribution Technologies for $1.6B

Special to The Freeman

April 16, 2014

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 & Bailey.

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.

www.johnsoncontrols.com