Glendale-based Johnson Controls Inc. will sell its federal security integration business to Springfield, Va.-based Versar Inc. The companies had previously been in a joint venture.
Versar, a project management company serving government and commercial clients in the construction management, environmental services, munitions response and professional services industries, will acquire Johnson Controls Security Systems for $20 million in cash and contingent consideration. The transaction is expected to close by Sept. 30.
Gaithersburg, Md.-based JCSS, which is part of Johnson Controls’ Milwaukee-based Building Efficiency business, designs, installs and supports complex physical security, network security and facilities management systems. Its offerings include access control, fire detection and alarm, and video surveillance systems. The Building Efficiency business also offers energy efficiency and sustainability solutions; commercial and residential heating, ventilation and air conditioning systems; technical building services; and commercial and industrial refrigeration. It has 500 branch offices in more than 150 countries.
“The acquisition of JCSS, which is well known for its substantial security expertise, will be a great strategic fit for Versar, extending our client base, and enabling us to offer additional products and services to our existing clients,” said Tony Otten, chief executive officer of Versar. “An important element of our growth strategy is to leverage our service capabilities to generate more work with our existing clients and to more effectively compete for new customers and projects in the new economic environment.”
Johnson Controls is a global diversified technology and industrial company with 170,000 employees in more than 150 countries. The company also recently sold its facilities management business, Global Workplace Solutions, announced it will spin off its Automotive Experience division into a separate company, and established a joint venture for its automotive interiors business.