JCI Expands Non-Auto Business with $1.6 Billion Acquisition

Johnson Controls Inc. has agreed to buy Air Distribution Technologies Inc., a huge provider of building air distribution and ventilation products in North America, for about $1.6 billion. The companies expect to complete the deal by the end of July.

Texas-based ADTI is owned by the Canada Pension Plan Investment Board, which acquired it for $1.1 billion in 2012.

The acquisition is the latest step in CEO Alex Molinaroli's quest to rebalance JCI's building and automotive revenue streams. Last year automotive operations accounted for 51% of total revenue, with 34% contributed by the company's building-efficiency unit.

Last September JCI sold its HomeLink remote door-opener business to mirror-maker Gentex Corp. for $700 million. It struck a deal in January to sell its automotive electronics business to Visteon Corp. for $265 million. JCI also reportedly is selling its headliner and sun visor units to private equity firm Atlas Holdings LLC.