Spinoff Possible at Johnson Controls -- WSJ
March 13 2018 - 3:02AM
Dow Jones News
Shedding battery business would tighten focus on building
technologies
By Cara Lombardo
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (March 13, 2018).
Johnson Controls International PLC could sell or spin off its
battery business as part of the industrial company's plan to
strengthen its core building technology offerings.
The Ireland-based company said Monday it is exploring strategic
alternatives for its power solutions business, which brought in
about $7.3 billion of revenue in the past fiscal year. The power
solutions business primarily sells lead-acid batteries for trucks
and cars but it also supplies batteries for hybrid and electric
vehicles. The business employs about 15,000 people.
The majority of the company's revenue comes from its building
technologies segment, which brought in about $23 billion in the
past fiscal year.
Johnson Controls said the two units are each well-positioned but
navigating different industry landscapes. Chief Executive George
Oliver said in prepared remarks that the company plans to invest in
and strengthen its HVAC, fire and security solutions and integrated
building management systems business.
The company said it has hired Centerview Partners as a financial
adviser and expects to complete its review over the next several
months. The company said the review may not result in a
transaction.
The latest review comes a few months after Johnson Controls
closed a deal to sell its Scott Safety business to 3M Co. for
around $2 billion. The Scott Safety unit produced respiratory
protection, gas and flame detection, thermal imaging and other
products for fire and police departments and customers in
industrial, oil and gas, chemical, military and homeland defense
segments. Proceeds from the deal were used to pay down part of $4
billion in debt resulting from a merger with Tyco
International.
Johnson Controls shares are down 6.5% over the past year.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
March 13, 2018 02:47 ET (06:47 GMT)
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