UPDATE: Johnson Controls Will Buy Air Distribution Technologies from CPPIB for $1.6B

Johnson Controls

, a global multi-industrial company, today announced it has reached a definitive agreement with the Canada Pension Plan Investment Board to acquire its Air Distribution Technologies business, one of the strongest and largest independent providers of air distribution and ventilation products in North America, for approximately $1.6 billion. "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 produces a broad range of air distribution products under well-known brands such as Ruskin®, Titus®, Hart & Cooley®, Krueger®, PennBarry™, Tuttle & Bailey® and many others which are delivered through strong independent distribution channels. Specific product lines include grilles, registers, and diffusers (GRDs); terminal units; fire and smoke dampers and fans. Johnson Controls is a leading provider of products, services and solutions that increase energy efficiency and lower operating costs in buildings for more than one million customers. "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," said Molinaroli. Within the Johnson Controls portfolio, Air Distribution Technologies will be aligned under the Building Efficiency platform where it will operate with its own brands, distribution channels and employees. The combination of the two companies will be jointly guided by Johnson Controls and Air Distribution Technologies leadership. "Johnson Controls is a leader in the building technology industry that will complement our strong brands and valued relationships," said Terry O'Halloran, chief executive officer, 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 by the end of July. Johnson Controls was advised by Goldman Sachs on strategic and financial aspects and Cleary Gottlieb Steen & Hamilton as legal representatives for this transaction. The company will host an analyst call today at 10 a.m. CDT. It is available via webcast in the investor section of http://www.johnsoncontrols.com/investors.