Johnson Controls weighs sale of ADT alarms unit, sources say
03/05/2024 12:45
(Adds details on alarms business, Johnson Controls assets from
paragraph 6)
By Amy-Jo Crowley, Andres Gonzalez and Anousha Sakoui
LONDON, May 3 (Reuters) - Johnson Controls International
JCI.N is considering the sale of its ADT alarms business as it
offloads some non-core businesses, three people familiar with
the matter told Reuters.
The unit of the New York-listed building manufacturer
operates in Europe and Latin America and has already drawn
interest from private equity funds, said the people, who spoke
on condition of anonymity.
The preparations are at an early stage and a sale process
could happen towards the end of the year, one of the people
said.
The alarms unit could fetch a valuation of less than $1
billion in the event of a sale, the person said. Johnson
Controls does not break down financials for the unit.
"We constantly evaluate ways to improve our business and
serve our customers better; however, we don't comment on rumor
or market speculation," a spokesperson for Johnson Control told
Reuters.
The alarms business sits under Johnson's Building Solutions
European and Latin American segment, which saw sales increase by
3% to $1.1 billion in its most recent quarter, according to its
latest results.
That business saw adjusted earnings before interest, tax,
depreciation and amortization (EBITDA) jump by 29% to $89
million in the period.
Johnson Controls has been attempting to divest its portfolio
of heating and ventilation assets as part of its efforts to
offload non-core businesses.
Reuters reported in March that Robert Bosch GmbH ROBG.UL ,
Lennox International LII.N and Samsung Electronics 005930.KS
were among the industrial firms competing to buy these assets.
Johnson Controls makes a range of appliances and equipment
for commercial buildings and homes. Founded in 1885, the group
inherited the fire and security business after its merger with
Tyco International in 2016.
(Reporting by Andres Gonzalez, Amy-Jo Crowley and Anousha
Sakoui; Editing by Emelia Sithole-Matarise)
((andres.gonzalez@thomsonreuters.com))