Johnson Controls reached an agreement with the Canada Pension Plan Investment Board to acquire its Air Distribution Technologies business, an independent provider of air distribution and ventilation products in North America, for about $1.6 billion.
"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."
Johnson Controls is a provider of products, services and solutions that increase energy efficiency and lower operating costs in buildings for more than one million customers.
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. The combination of the two companies will be jointly guided by Johnson Controls and Air Distribution Technologies leadership.