Johnson Controls, a manufacturer of fire, HVAC and security equipment for buildings, is selling its air distribution technologies business to Los Angeles-based private equity firm Truelink Capital. The company did not disclose the price of the sale.
“The sale of our Air Distribution Technologies business is the next step as we continue to simplify our portfolio and advance our transformation into a comprehensive solutions provider for commercial buildings,” said George Oliver, chief executive officer of Johnson Controls. “This transaction is consistent with our strategy to focus our resources on our most attractive opportunities for value creation. I would like to thank our talented Air Distribution Technologies employees for their hard work and dedication over the years. We are confident the business and the team will be well positioned for future success under Truelink’s ownership.”
Included in the sale are the air distribution and movement brands Koch Filter, Titus, Ruskin, Kreuger, PennBarry, along with Tuttle & Bailey and its product lines of grilles, registers and diffusers, terminal units, fire and smoke dampers, louvers, filters, and fans.
These products are manufactured in the United States, Mexico, India, Thailand and the United Arab Emirates in facilities that will transfer to Truelink as part of the transaction. The Johnson Controls and Enviro-Tec brands are not included in the transaction, which is expected to close in the second half of 2024.
“Air Distribution Technologies has been a leading player in the commercial HVAC space for over 75 years and has consistently delivered innovative, high-quality products to its customers, demonstrating a strong track record of excellence,” said Todd Golditch, co-founder and managing partner at Truelink. “Our objective will be to expand the business through partnership with management in driving substantial commercial and operational improvements to strengthen Air Distribution Technology’s market-leading position and better serve their customers.”
Also today, Bloomberg News reported that Hitachi is considering selling its 40% stake in an air conditioning joint venture with Johnson Controls. The company has been looking to sell its heating and ventilation assets for months, according to Bloomberg.
Simplifying the company’s portfolio is an ongoing process for Johnson Controls. During the company’s first quarter earnings call in January, Oliver confirmed that Johnson Controls is actively pursuing “strategic alternatives” for some of its non-commercial product lines.
“When you look at the non-commercial product lines, they’re excellent businesses, but are they consistent with our strategy over the longer term?” said Oliver during the earnings call. “That’s why we’re now pursuing the alternatives.”
