Bosch, Lennox, Samsung vie for heating and ventilation assets from Johnson Controls

Johnson Controls acquired Ireland-based peer Tyco International in a $16.5bn deal in 2016. By moving its headquarters to Cork, Johnson Controls carried out a so-called tax-inversion to reduce its overall tax bill.

Robert Bosch, Lennox International, and Samsung Electronics are among the industrial firms competing to acquire heating and ventilation assets worth over $6bn (€5.52bn) from Johnson Controls International, sources said.

Milwaukee-based and Cork-headquartered Johnson Controls has been working with its advisers to sell its residential and light commercial businesses, including a US business and a 60% stake in an air-conditioning venture with Japan's Hitachi called Johnson Controls–Hitachi Air Conditioning, the sources said, requesting anonymity as the discussions are confidential.

The sources said other bidders could emerge, and any deal if one emerges at all, is still months away. 

“As we continue to focus on simplifying the company, we are always assessing opportunities to advance our transformation into a comprehensive solutions provider for commercial buildings," a Johnson Controls spokesperson said, reiterating comments the company made during a recent investor call.

"As part of the continuous evaluation of our portfolio, we are in the early stages of pursuing strategic alternatives of our noncommercial product lines in line with our objective to maximize value to our shareholders."

Bosch, Lennox, and Samsung did not immediately respond to requests for comment.

Johnson Controls has been attempting to divest the portfolio of heating and ventilation assets as part of its efforts to jettison non-core businesses.

Founded in 1885, Johnson Controls makes a wide range of appliances and equipment for commercial buildings, as well as home comfort appliances. 

It provides electronic systems for offices, schools, and hospitals in areas such as ventilation, security and fire detection.

Johnson Controls' shares, which have risen about 12% so far this year, closed at $63.75 on Friday, giving the company a market capitalisation of about $43bn (€39.58bn).

Johnson Controls acquired Ireland-based peer Tyco International in a $16.5bn (€15.19bn) deal in 2016. 

By moving its headquarters to Cork, Johnson Controls carried out a so-called tax-inversion to reduce its overall tax bill.

• Reuters