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JCI Inks Deal to Sell Battery Business
Johnson Controls International plc has agreed to sell its Power Solutions battery business to Toronto-based investment firm Brookfield Business Partners LP and its institutional partners for $13.2 billion.
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Johnson Controls International plc has agreed to sell its Power Solutions battery business to Toronto-based investment firm Brookfield Business Partners LP and its institutional partners for $13.2 billion.
Due to close by next June, the deal is expected to generate $11.4 billion in net cash proceeds after taxes and transaction-related expenses and will allow JCI to focus on its core building-related businesses, which make HVAC, fire detection and building access control systems. The company plans to use as much as $3.5 billion of the proceeds toward debt paydown and help maintain an investment grade credit rating.
JCI put the Power Solutions business, which makes lead-acid starter batteries under the Delkor, Heliar, LTH, MAC and Varta brands, under strategic review in March. Last month, media reports indicated a sale to Brookfield was imminent.
The unit, which makes about 154 million lead-acid batteries for passenger vehicles per year, generated about $8 billion in sales for the fiscal year that ended Sept. 30.
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