Johnson Controls Sells HVAC Business to Bosch, Boosting Growth for ADVISORSHARES HVAC AND INDUSTRIALS ETF
- Johnson Controls sold its R&LC HVAC business to Bosch for $8.1 billion, enhancing focus on building solutions.
- The sale provides Johnson Controls with $5 billion in net cash, accelerating growth and innovation in technology-driven services.
- A $5 billion share repurchase program reflects Johnson Controls' commitment to returning value to shareholders post-transaction.
Johnson Controls Completes Major HVAC Business Sale to Bosch Group: A New Era of Focus and Growth
On August 1, 2025, Johnson Controls International plc announces the completion of its significant $8.1 billion sale of the Residential and Light Commercial (R&LC) HVAC business to the Bosch Group. This strategic transaction, which yields Johnson Controls approximately $5.0 billion in net cash after taxes and costs, marks a pivotal step in the company’s ongoing transformation into a focused provider of innovative building solutions. CEO Joakim Weidemanis emphasizes that the sale positions Johnson Controls for accelerated growth and enhanced profitability, enabling the company to sharpen its technology-driven and service-enabled capabilities. The divested assets include the North American ducted HVAC segment and a global residential joint venture with Hitachi, Ltd., although Hitachi retains certain ductless HVAC assets in Japan.
The completion of this sale allows Johnson Controls to streamline its operations and concentrate on its core competencies in building technology. By divesting the R&LC HVAC division, the company aims to elevate its position in the marketplace as a pure-play provider of advanced building solutions. Weidemanis articulates that this move will facilitate a quicker path to growth and better align the company’s resources toward innovation and customer-focused services. The transaction is not just a financial maneuver; it represents a strategic realignment that will enable Johnson Controls to deliver increased value to its customers and shareholders while maintaining a commitment to sustainability and smart building technologies.
In conjunction with the sale, Johnson Controls plans to implement a $5.0 billion accelerated share repurchase program, which is part of a broader capital allocation strategy that includes an existing $9.8 billion share repurchase authorization. This initiative demonstrates the company’s commitment to returning value to its shareholders while navigating through this transformative phase. Weidemanis expresses gratitude to the employees of the R&LC HVAC division, wishing them success as they transition to Bosch, underscoring the human element of this corporate shift and the importance of maintaining strong relationships within the industry.
In related developments, the transaction is supported by leading financial advisors, including Centerview Partners and Citi, alongside legal counsel from Simpson Thacher and investor relations guidance from Joele Frank. This robust advisory framework underscores the transaction's complexity and significance within the HVAC and building solutions sectors. As Johnson Controls embarks on this new chapter, the focus remains clear: to innovate and enhance the customer experience while driving profitability and growth in an evolving industry landscape.