1 October 2014
Johnson Controls has announced that it will divest its Global Workplace Solutions (GWS) business.
The action reflects the company's stated intention to invest in businesses that are core to its long-term growth strategy and multi-industrial portfolio.
Alex Molinaroli, chairman and CEO of Johnson Controls, said: "The global facilities management outsourcing market is very healthy and continues to grow. 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."
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. It will continue to be a close partner to Johnson Controls as both a supplier and a customer.
John Murphy, vice-president and president of Johnson Controls Global Workplace Solutions, said: "We have a strong reputation in the market, an incredibly talented team of employees, and a portfolio of long-standing, high-quality clients.
"Our business has only just begun to realise 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 adviser to assist in the initiative. Johnson Controls will know more about timing after it identifies potential buyers. In the meantime it is committed to working through the process as quickly as possible to ensure minimal disruption to the business.