Johnson Controls, Inc. (NYSE: JCI – news) has announced an agreement with Novartis (NYSE: NVS – news) for the delivery of integrated facility management and infrastructure services. Subject to due diligence, the contracts are expected to be signed by the end of November 2000 and are valued at approximately $115 million (200 Million Swiss Francs) per year for seven years.
Johnson Controls will support four Novartis sites across their Basel, Switzerland headquarters and will standardize facility management service delivery across ten million square feet of facilities that includes manufacturing, research and development and administrative operations in support of Novartis’ healthcare business. Technical maintenance services and maintenance process automation will be delivered across all manufacturing equipment and scientific testing equipment. Johnson Controls will also provide infrastructure support services covering the full spectrum of facility management from mailroom and reprographics to security, fire services and emergency service management.
Key drivers in the agreement included Johnson Controls experience in providing integrated facility management support to pharmaceutical industry leaders and its expertise in supporting portfolios that must operate within the parameters of the Food and Drug Administration accreditation process. Johnson Controls has committed to deliver guaranteed savings to Novartis and plans to retain every Novartis employee impacted by the agreement. To this effect, 1,000 Novartis staff currently based in Basel will be transferred to employment with Johnson Controls.
“We are looking forward to delivering the knowledge and best practices we’ve gained through our work within the pharmaceutical industry,” states Robert Netolicka, President of Johnson Controls Integrated Facility Management. “Partnering with Novartis creates an opportunity to share our expertise and help Novartis exceed their business goals.”
“Johnson Controls possesses the necessary competencies and has a corporate culture that matches our ideas about performance and personnel policies,” comments Hans Kindler, member of the Novartis Executive Committee.
Novartis is a world leader in healthcare with core businesses in pharmaceuticals, consumer health, generics, eye-care, and animal health. In 1999, the Group (including Agribusiness) achieved sales of CHF 32.5 Billion (USD 21.6 Billion) and invested more than CHF 4.2 Billion (USD 2.8 Billion) in research and development. Headquartered in Basel, Switzerland, Novartis employs about 82,000 people and operates in over 140 countries around the world. The Group plans to spin off its Crop Protection and Seeds sectors to merge them with the agrochemicals business of AstraZeneca in the fourth quarter of 2000.
Johnson Controls Integrated Facility Management, with headquarters in Atlanta, provides facility management and workplace consulting services for many Fortune 500 companies, managing more than one billion square feet of facilities around the globe.
Johnson Controls, Inc., is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of seating and interior systems and batteries. For non-residential facilities, Johnson Controls provides building control systems and services, energy management and integrated facility management. Johnson Controls, founded in 1885, has headquarters in Milwaukee, Wis. Its sales for 1999 totaled $16.1 billion.
