Yahoo Finance Johnson Controls (JCI) Inks Deal to Sell Air Distribution Unit
Johnson Controls International plc JCI recently entered into an agreement with Truelink Capital for the divestment of its Air Distribution Technologies business. JCI’s Air Distribution Technologies business is well known for its innovative air distribution and ventilation solutions for residential and non-residential buildings.
Johnson Controls’ shares inched down 0.3% yesterday, ending the trading session at $69.10.
Based in Los Angeles, Truelink Capital is a middle-market private equity company that primarily invests in tech-enabled services and industrials sectors.
Inside the Headlines
The deal involves the sale of several brands like Ruskin, Koch Filter, Kreuger, Titus, PennBarry and Tuttle & Bailey, and the product lines of grilles, terminal units, registers and diffusers, louvers and others. Truelink Capital will acquire several production facilities of Air Distribution Technologies, based in the United States, Thailand, Mexico, India and the United Arab Emirates. Notably, the Johnson Controls and Enviro-Tec brands are not part of the transaction.
This divestment agreement is in sync with the company’s business transformation strategy, which includes disposing of businesses to unlock values for its shareholders. The divestiture should enable Johnson Controls to focus more on its core business and rebalance its portfolio toward the commercial building solutions.
The transaction is anticipated to be completed in the second half of 2024. It is subject to certain customary closing conditions and approvals.
Zacks Rank & Price Performance
Johnson Controls, with a $46.6 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is gaining from solid momentum in the Building Solutions North America segment, aided by an increase in demand for HVAC platform. Investments in digital offerings, like the OpenBlue platform, is benefiting the company. However, its Install business under the Building Solutions Asia Pacific segment has been subject to a challenging market condition in China.
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JCI’s shares have risen 7.8% compared with the industry’s growth of 0.6% in the past three months.
The Zacks Consensus Estimate for its fiscal 2024 (ending September 2024) earnings has declined 0.6% over the past 60 days.
3 Promising Stocks
Some better-ranked stocks from the same space are presented below.
Napco Security Technologies, Inc. NSSC currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NSSC delivered a trailing four-quarter average earnings surprise of 16%. In the past 60 days, the Zacks Consensus Estimate for Napco Security’s fiscal 2024 (ending June 2024) earnings has increased 3.8%.
MSA Safety Incorporated MSA carries a Zacks Rank #2 at present. MSA delivered a trailing four-quarter average earnings surprise of 16.4%. In the past 60 days, the Zacks Consensus Estimate for its 2024 earnings has inched up 0.3%.
Brady Corporation BRC presently has a Zacks Rank of 2. BRC delivered a trailing four-quarter average earnings surprise of 6.7%. In the past 60 days, the Zacks Consensus Estimate for its fiscal 2024 (ending July 2024) earnings has risen 3.3%.
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Johnson Controls International plc (JCI) : Free Stock Analysis Report
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MSA Safety Incorporporated (MSA) : Free Stock Analysis Report
