The total transaction is valued at $8.1 billion. As part of the transaction, Hitachi will retain certain ductless HVAC assets located in Shimizu, Japan.

"We are pleased to have reached this pivotal milestone, which accelerates our transformation and positions Johnson Controls as a simpler, higher-growth company," said George Oliver, Johnson Controls chairman and CEO. “Johnson Controls is already benefiting from our transformation, which enables the unparalleled value proposition we provide to customers, and exposure to rapidly accelerating demand in the data center market and other key macroeconomic tailwinds. We believe Johnson Controls is well-positioned for its next phase of growth to deliver enhanced, long-term value to shareholders."

In 2023, the residential and light commercial HVAC business generated approximately $4.5 billion in consolidated revenue. Following the close of the transaction, the business will continue to provide residential and light commercial HVAC products under the York and Hitachi brands as well as Coleman, Champion, Luxaire, Guardian, Evcon, TempMaster, and others.

"Johnson Controls' residential and light commercial business has a consistent track record of excellence within the HVAC industry,” said Christian Fischer, deputy chairman of the board of management of Robert Bosch GmbH. “Together with our future colleagues in the acquired business, we want to seize the huge opportunities offered by the market for the further growth of this new unit. The acquired entities will strengthen Bosch's Home Comfort Group in an extremely attractive segment and will become part of the Bosch core business.”

The total consideration of approximately $6.7 billion to Johnson Controls includes approximately $4.6 billion for its North America ducted business and approximately $2.1 billion for its interest in the Johnson Controls-Hitachi Air Conditioning joint venture.

Net cash proceeds to Johnson Controls is expected to be approximately $5.0 billion after tax and transaction-related expenses. The transaction includes 16 manufacturing sites and 12 engineering locations in more than 30 countries. It is expected to close in approximately 12 months, subject to required regulatory approvals and other customary closing conditions.

“As the biggest acquisition in Bosch history, this is an important milestone in the systematic implementation of our strategy for 2030. We are dynamically pushing ahead with the strong development of Bosch, and will achieve a globally leading position in the promising HVAC market with this acquisition,” said Hartung. “In taking this step, moreover, we will strengthen our presence in the U.S. and Asia and achieve a better balance among our business sectors. This is also part of our strategy. In this way, we will open up further growth opportunities and put the company as a whole on a firmer footing.”