Bosch to Buy Heating, Air-Conditioning Businesses From Johnson Controls, Hitachi for $8 Billion

By Pierre Bertrand

Robert Bosch said it will pay $8 billion for home-comfort businesses from Hitachi and Johnson Controls International, the company's largest purchase ever.

The German technology and services company said Tuesday that it plans to acquire the residential and light commercial heating, ventilation and air conditioning business from both companies.

The acquisition entails taking over Johnson Controls's global HVAC solutions business for residential and light commercial buildings and also includes acquiring the Johnson Controls and Hitachi Air Conditioning joint venture, including Hitachi's 40% stake, Bosch said.

The deal, expected to close in approximately 12 months, is the biggest transaction in Bosch's history, the company said, adding that the deal is subject to antitrust approvals.

Bosch said that the acquired businesses generated about 4 billion euros ($4.36 billion) in sales revenue in 2023.

Johnson Controls separately said it would receive approximately $6.7 billion of the $8.1 billion transaction value.

"Following the close of the transaction, the Johnson Controls portfolio will be substantially simplified with enhanced strategic focus, aligned with the Company's objective to be a pure-play provider of comprehensive solutions for commercial buildings," the Irish company said.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

July 23, 2024 05:03 ET (09:03 GMT)

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