Johnson Controls reports the successful completion of its merger with Tyco. It’s described as marking an historic turning point for both companies, in products for the buildings and energy sectors.
With $30 billion in revenue and 117,000 employees (following the anticipated spinoff of the Adient automotive business in October), this combination brings together building controls, fire, security, HVAC and energy storage, to serve the spectrum of markets including large institutions, government, commercial buildings, retail, industrial, small business and residential.
Longer term, the company points to new technology and business models to support the smart buildings, campuses and cities; as well as building upon services driven by data analytics and connectivity like the Retail Solutions and Connected Services businesses. Johnson Controls also will have one of the largest energy storage platforms to serve an expanding global energy storage market.
Alex Molinaroli, Johnson Controls chairman and CEO, said: “We are more than just two businesses that have come together – we are now one team uniquely positioned to create value. “Our combined insights and world class technologies will help build even smarter, more secure and more sustainable environments that help our customers win and broadly move the world forward.”
As a result of the robust integration planning already in place, the company is on track to realise $1 billion of savings related to previously announced merger synergies and productivity initiatives.
George R Oliver, Johnson Controls president and chief operating officer, said: ”In addition to identifying significant synergies and improvements, our integration teams put us in position to complete the merger a month ahead of schedule so we can hit the ground running and realise the value of the merger for customers and shareholders. We are ready to integrate the skill sets and capabilities of both companies and develop solutions to meet our customers’ needs in ways neither company could on its own.”
As previously announced, Johnson Controls’ automotive business is still on schedule to spin off into an independent company, known as Adient, on October 31, 2016.
