Johnson Controls International has unveiled a definitive agreement to sell its Power Solutions business to Brookfield Business Partners, together with institutional partners including Caisse de dépôt et placement du Québec in a cash transaction valued at US$13.2bn.

“Today’s announcement marks a significant milestone in the ongoing transformation of the Johnson Controls portfolio,” said chairman and CEO, George Oliver. “The sale of our Power Solutions business will create value for investors by streamlining our portfolio and giving us increased financial flexibility to strengthen our balance sheet, return capital to shareholders and create optionality in our Buildings business.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

“This focused portfolio will allow us to capitalise on secular growth trends and to deliver strong financial performance through improved free cash flow conversion, lower capital intensity and continued margin expansion.”

Net cash proceeds are expected to be US$11.4bn after tax and transaction-related expenses.

Johnson Controls’ Power Solutions business works to meet electrification requirements in vehicles.

See Also:

In fiscal 2018, Power Solutions generated US$8bn in revenue and US$1.68bn in earnings before interest, taxes, depreciation and amortisation.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The transaction is expected to close by June 30, 2019, subject to customary closing conditions and required regulatory approvals. Power Solution’s operating results will be reported in discontinued operations beginning in the first fiscal quarter of 2019.

Centerview Partners and Barclays served as financial advisors to Johnson Controls and Simpson Thacher served as legal advisors.