IRELAND: Johnson Controls International (JCI) could sell or spin-off its Power Solutions business as it seeks to strengthen and invest in its HVAC, fire and security and BMS interests.
The Cork-based multinational conglomerate has announced today that it is exploring “strategic alternatives” for its Power Solutions business.
Johnson Controls Power Solutions business creates, manufactures, and distributes advanced battery technologies for virtually every type of vehicle. It generated sales of $7.3bn last year compared to the sales of $22.80bn achieved by its Building Technologies & Solutions business.
“Our focus is on improving operational execution, realising merger synergy and productivity benefits, and optimising the business portfolio,” explained chairman and CEO George Oliver. “Given the differing dynamics of the platforms, we are evaluating strategic alternatives for Power Solutions. Today’s announcement also reflects our strategic priority to strengthen and invest in our global market-leading positions in HVAC, fire and security solutions and integrated Building Management Systems, which operate in attractive vertical markets with strong growth prospects.”
Johnson Controls says it expects to complete its assessment of strategic alternatives over the next few months but says there are no assurances as to the form and timing of any transaction as a result of this strategic review, or if a transaction will be consummated.