Oct. 6, 2014: Johnson Controls to Divest Its Global Workplace Solutions Business
Service-Based Business Is Not Core to Company’s Manufacturing, Engineering, and Product-Based Portfolio
MILWAUKEE — Johnson Controls has announced that it plans to divest its Global Workplace Solutions (GWS) business. The company said the action reflects its previously stated intention to invest in businesses that are core to its long-term growth strategy and multi-industrial portfolio.
“The global facilities management outsourcing market is very healthy and continues to grow,” said Alex Molinaroli, chairman and CEO, Johnson Controls. “GWS is a strong business and a leader in its market with tremendous potential to grow. As we’ve focused on it this past year to understand what is needed to win long-term, it is clear that GWS is really an exclusively service-based business and not core to our manufacturing, engineering, and product-based portfolio. This is a win-win all around.”
The GWS business is a leading provider of facilities, corporate real estate, and energy management. It has been part of Johnson Controls’ portfolio for more than 20 years, and currently manages more than 1.8 billion square feet of corporate real estate. The company said it will continue to be a close partner to Johnson Controls as both a supplier and a customer.
“We have a strong reputation in the market, an incredibly talented team of employees, and a portfolio of long-standing high-quality clients,” said John Murphy, vice president and president, Johnson Controls Global Workplace Solutions. “Our business has only just begun to realize its full potential. With a new owner we will have access to the capital and resources required to continue to strengthen our business and be a formidable force in the market.”
Johnson Controls has retained Bank of America Merrill Lynch as exclusive financial advisor to assist in the initiative. Johnson Controls said it will know more about timing after it identifies potential buyers, and it is committed to working through the process as quickly as possible to ensure minimal disruption to the business.
For more information, visit www.johnsoncontrols.com.
Publication date: 10/6/2014