Johnson Controls to Sell Air Distribution Technologies Business to Truelink Capital

Johnson Controls, a global leader in smart, healthy, and sustainable buildings, has announced a major move in its strategic transformation. The company revealed on Wednesday that it has reached a definitive agreement to sell its Air Distribution Technologies business to Truelink Capital, a middle-market private equity firm based in Los Angeles.

“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,” said Johnson Controls Chairman and CEO George Oliver. “This transaction is consistent with our strategy to focus our resources on our most attractive opportunities for value creation.”

The sale includes well-known air distribution and movement 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 across the United States, Mexico, India, Thailand, and the United Arab Emirates, which will transfer to Truelink as part of the transaction.

Truelink’s Co-Founder and Managing Partner Todd Golditch expressed confidence in the future success of Air Distribution Technologies under their ownership. “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,” said Golditch.

The transaction is expected to close in the second half of the calendar year 2024, subject to customary closing conditions. Baird served as the exclusive financial advisor and Cleary Gottlieb Steen & Hamilton LLP served as legal advisor to Johnson Controls on the transaction.

This strategic move by Johnson Controls marks a significant step in its evolution as a comprehensive solutions provider for commercial buildings, while Truelink Capital looks forward to leveraging the strong foundation of Air Distribution Technologies to drive further growth and success in the commercial HVAC space.