Bosch snaps up heating and air con assets in $8bn deal

23rd Jul 2024 11:33

(Sharecast News) - German technology group Bosch is to acquire the residential ventilation business of Johnson Controls International in an $8bn deal, it was announced on Tuesday.

Under the terms of the deal, Bosch will take over the global HVAC (heating, ventilation and air conditioning) solutions business for residential and light commercial buildings from Johnson Controls.

Also included is Johnson Controls' 100% interest in its joint venture with Hitachi Air Conditioning.

The privately-owned firm said the $8.1bn transaction would boost revenues in its home comfort division by around €4bn, to €9bn.

Chair Stefan Hartung said the deal, the biggest in Bosch's history, was a "milestone".

He continued: "This is an important milestone in the systematic implementation of our strategy for 2030. We...will achieve a globally-leading position in the promising HVAC market with this acquisition.

"Moreover, we will strengthen our presence in the US and Asia, and achieve a better balance among our business sectors."

George Oliver, chief executive of Johnson Controls, said: "This pivotal milestone...accelerates our transformation and positions Johnson Controls as a simpler, higher-growth company.

"We believe [the company] is well-positioned for its next phase of growth, to deliver enhanced, long-term value to shareholders."

Together with the joint venture, the HVAC business - which employs 12,000 people globally - generated revenues of around $4.4bn in 2023.

Shares in America's Johnson Controls, which is domiciled in Ireland, rose nearly 2% in pre-market trading.

The deal is expected to close in around 12 months, Bosch said.