Johnson Controls sells Air Distribution Technologies business

“The next step as we continue to simplify our portfolio.”

George Oliver, Johnson Controls CEO

Johnson Controls has reached a definitive agreement to sell its Air Distribution Technologies business to Truelink Capital.

Truelink Capital is a middle-market private equity firm based in Los Angeles.

George Oliver, Johnson Controls Chairman and CEO, stated: “The sale of our Air Distribution Technologies business is the next step as we continue to simplify our portfolio and advance our transformation into a comprehensive solutions provider for commercial buildings.”

Oliver thanked the Air Distribution Technologies employees for their dedication and expressed confidence in the future success of the business under Truelink’s ownership.

The sale includes market-leading brands such as Koch Filter, Titus, Ruskin, Kreuger, PennBarry, and Tuttle & Bailey, along with their product lines of grilles, registers and diffusers, terminal units, fire and smoke dampers, louvers, filters, and fans.

These products are manufactured in facilities located in the United States, Mexico, India, Thailand, and the United Arab Emirates, which will transfer to Truelink as part of the transaction.

The Johnson Controls and Enviro-Tec brands are not included in the sale.

Truelink Capital’s plans for Air Distribution Technologies

Truelink Capital aims to expand the Air Distribution Technologies business through substantial commercial and operational improvements.

Todd Golditch, Truelink’s Co-Founder and Managing Partner, commented: “Air Distribution Technologies has been a leading player in the commercial HVAC space for over 75 years and has consistently delivered innovative, high-quality products.

Our objective will be to expand the business through partnership with management in driving substantial commercial and operational improvements to strengthen Air Distribution Technology’s market-leading position and better serve their customers.”

Golditch also thanked Johnson Controls for their partnership and trust in entrusting Truelink Capital with the Air Distribution Technologies business.

The transaction is expected to close in the second half of 2024, subject to customary closing conditions.

Advisory roles in the transaction

Baird served as the exclusive financial advisor to Johnson Controls for this transaction, while Cleary Gottlieb Steen & Hamilton LLP provided legal advice.

The transaction reflects Johnson Controls’ strategic focus on reallocating resources to its most promising opportunities for value creation.

Transition details and employee recognition

As part of the transition, facilities manufacturing Air Distribution Technologies products in several countries will transfer to Truelink.

The employees who have been part of these operations have been acknowledged for their hard work and dedication over the years by Johnson Controls’ CEO George Oliver.

He expressed confidence that the team would continue to thrive under new ownership.