Publicly traded Johnson Controls has agreed to sell its Air Distribution Technologies business, a provider of air management and filtration products, to Truelink Capital.
Air Distribution Technologies (ADT) was acquired by Johnson Controls in 2014 from Onex Partners, American Capital, and the Canada Pension Plan Investment Board for $1.6 billion and has operated under the company’s Global Products business segment.
Today, ADT’s products include grilles, registers and diffusers, terminal units, fire and smoke dampers, louvers, filters and fans, which are sold under the Koch Filter, Titus, Ruskin, Kreuger, PennBarry and Tuttle & Bailey brands. Not included in the sale to Truelink Capital are the Johnson Controls and Enviro-Tec brands. ADT’s products are manufactured in the United States, Mexico, India, Thailand and the United Arab Emirates in facilities that will transfer to Truelink as part of the transaction.
ADT, led by CEO Doug Schuster, has more than 4,500 employees operating across more than 25 locations and is headquartered near Dallas in Plano, Texas. Post-closing, ADT will continue to be led by Mr. Schuster.
“We are grateful for the stewardship by Johnson Controls to build and grow Air Distribution Technologies into the business it is today,” said Mr. Schuster. “Our entire organization is incredibly excited for what this transaction means for our business, our employees and partners. As a standalone business, we expect the business will be more agile and customer-centric than ever before. We plan to accelerate our product innovation and enhance our capabilities to continue delivering high-quality products that help our customers meet their ongoing demands.”
“Air Distribution Technologies has been a leading player in the commercial HVAC space for over 75 years,” said Todd Golditch, a co-founder and a managing partner of Truelink. “The company consistently delivers innovative, high-quality products to its customers, demonstrating a strong track record of excellence. We are thrilled about this acquisition and the opportunity to partner with this outstanding management team.”
Los Angeles-headquartered Truelink Capital invests in tech-enabled services and industrial companies that have from $20 million to $75 million in EBITDA. Service sectors of specific interest include business-to-business, education technology, financial technology, information technology and software. Within industrials, sectors of specific interest include building products, chemicals, transportation and logistics, and packaging. The buy of ADT is the fifth acquisition for Truelink since its founding in 2022 by Todd Golditch and Luke Myers.
“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 George Oliver, the chairman and CEO of Johnson Controls. “This transaction is consistent with our strategy to focus our resources on our most attractive opportunities for value creation.”
Johnson Controls (NYSE: JCI) is a multinational conglomerate specializing in HVAC, fire and security systems, and building management services and products. The company operates in more than 150 countries and has more than 100,000 employees. In FY 2023, the company reported revenues of $26.6 billion. Johnson Controls was founded in 1885 by Warren Johnson and has headquarters in Milwaukee, Wisconsin, and Cork, Ireland.
Baird was the financial advisor to Johnson Controls on this transaction which is expected to close by the end of 2024.
© 2024 Private Equity Professional | June 20, 2024
