Glendale-based Johnson Controls Inc. has agreed to acquire air distribution and ventilation product manufacturer Air Distribution Technologies Inc. for about $1.6 billion.
The Richardson, Texas-based Air Distribution Technologies is owned by the Canada Pension Plan Investment Board. It is a leading North American independent air distribution and ventilation product provider.
ADT’s products include grilles; registers and diffusers; terminal units; and fire and smoke dampers and fans sold under brands like Ruskin, Titus, Hart & Cooley, Krueger, PennBarry and Tuttle & Bailey.
Johnson Controls is a global industrial firm that provides products and services aimed at improving operational efficiency and energy savings for buildings, as well as cars and their batteries, electronics and interiors.
“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. Air Distribution Technologies customers will have undisrupted access to the products and brands that they have come to expect. This new channel will provide an important growth platform for Johnson Controls as we continue to pursue additional investments in new products and increase our market coverage worldwide.”
ADT will be integrated into Johnson Controls’ Building Efficiency division and will continue to use its own brands, distribution channels and employees. Both leadership teams will guide the integration.
“Johnson Controls is a leader in the building technology industry that will complement our strong brands and valued relationships,” said Terry O’Halloran, CEO of Air Distribution Technologies. “Our customers will now have access to an unmatched portfolio of products and offerings as well as backing and continued innovation from the best experts in the industry.”
The acquisition is subject to limited conditions and is expected to close in July.