Johnson Controls to buy Air Distribution Technologies from CCPIB for $1.6 bn
16 Apr 2014
US auto parts maker Johnson Controls today struck a deal to buy Air Distribution Technologies, from the Canada Pension Plan Investment Board (CCPIB), for about $1.6 billion.
CPPIB acquired Dallas-based Air Distribution from Tomkins in 2012 for $1.1 billion of which approximately $500 million was funded with equity from CPPIB. Upon closing of the proposed sale, CPPIB said that it will receive proceeds of approximately $1 billion.
Air Distribution is a leading provider of innovative air distribution and ventilation solutions for residential and non-residential buildings as well as air movement and control solutions for industrial and infrastructure applications.
Air Distribution produces a broad range of air distribution products under well-known brands such as Ruskin, Titus, Hart & Cooley, Krueger, PennBarry, Tuttle & Bailey and many others.
Johnson Controls is a leading provider of products, services and solutions that increase energy efficiency and lower operating costs in buildings for more than one million customers.
Johnson Controls portfolio said Air Distribution Technologies will be aligned under its Building Efficiency platform where it will operate with its own brands, distribution channels and employees.
"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 CEO. "It reflects our stated commitment to invest in the buildings business as a growth platform and further enhances our offerings and channels."