Funds amass large stakes in Cork-headquartered company Johnson Controls

The company, incorporated in Ireland and with main offices in Milwaukee, is led by chief executive George Oliver, who was CEO of Tyco International before it combined with Johnson Controls in 2016.

New York-based hedge fund Soroban Capital Partners has amassed a large stake in the Cork-headquartered industrials firm Johnson Controls International, compounding pressure brought by activist investor Elliott Investment Management.

Soroban has invested more than $500m (€460m) in Johnson Controls, making it one of the company’s top 20 investors. Pressure on Johnson Controls is mounting, with prominent activist investor Elliott building a $1bn-plus (€0.92bn) position in the company, Bloomberg News reported previously.

While Johnson Controls’ shares had gained 9% in the past year before Monday, it has lagged behind industrial peers such as Carrier Global Corp and Lennox International Inc, which climbed more than 50% during the same period.

The company, incorporated in Ireland and with main offices in Milwaukee, is led by chief executive George Oliver, who was CEO of Tyco International before it combined with Johnson Controls in 2016. 

Since 2020, Johnson Controls has seen senior executive turnovers including for chief financial officer. Marc Vandiepenbeeck was appointed to the role this year.

While Elliott’s intentions for the stake could not immediately be learned, several of its recent investments precipitated C-suite turnovers.

Johnson Controls produces fire detection, refrigeration, security and HVAC equipment, mainly in commercial buildings.

The company is in the process of selling heating and ventilation assets worth about $5bn (€4.6bn) that have drawn interest from Lennox and Robert Bosch GmbH.

Bloomberg