Johnson Controls, Inc. will acquire York International Corporation in a sale expected to be worth approximately $3.2 billion, including the assumption of approximately $800 million of York debt.
York, with estimated sales of nearly $5 billion, will become part of the nearly $6 billion Controls Group of Johnson Controls. As a result of the acquisition, Johnson Controls will nearly double its position in the global building environments industry and become the largest global provider to the high-margin building services market.
In addition, Johnson Controls global market reach will be enhanced, as the businesses collectively serve customers from over 500 sales and service offices and reach more than 125 countries with 55,000 employees. The two companies are market leaders in Europe and North America, and have complementary operations in the faster growing regions of Central Europe, the Middle East, Asia (especially China) and Latin America.
John M Barth, Chairman and CEO of Johnson Controls, said: “Johnson Controls and York are ideal partners, and this transaction will bring significant benefits to shareholders, customers and employees of both companies. By joining with York, a market leader with a strong growth outlook, Johnson Controls is staking out a strategic leadership position in the global building environments industry that will offer significant growth potential and synergies with our controls business.”
He added: “The transaction will enable us to become a single source of integrated products and services that building owners want in order to optimise comfort and energy efficiency. With the addition of York, we will have enhanced HVAC&R, controls, fire and security capabilities. Bringing together our two organisations will also create the largest building services force in the world, strongly positioning us to capture an increased share of the fragmented $130 billion global services market for commercial buildings.”
