Johnson Controls International plc NYSE JCI Johnson Controls or the Company, the global leader in smart, healthy, safe and sustainable buildings, today announced it has reached a definitive agreement to sell its Residential and Light Commercial R LC HVAC business in an all-cash transaction to the Bosch Group Bosch. The transaction includes the North America Ducted business and global Residential joint venture with Hitachi, Ltd. Hitachi, of which Johnson Controls owns 60 and Hitachi owns 40. The total transaction is valued at 8.1 billion , and the Companys portion of the consideration is approximately 6.7 billion . As part of the transaction, Hitachi will retain certain ductless HVAC assets located in Shimizu, Japan .
Following the close of the transaction, the Johnson Controls portfolio will be substantially simplified with enhanced strategic focus, aligned with the Companys objective to be a pure-play provider of comprehensive solutions for commercial buildings. Johnson Controls delivers a unique value proposition to customers, with its unmatched service and digital offerings that improve commercial building efficiency and reduce operational costs through its OpenBlue digital platform. The transaction represents a significant portion of the Companys previously announced strategic evaluation of non-core product lines.
We are pleased to have reached this pivotal milestone, which accelerates our transformation and positions Johnson Controls as a simpler, higher-growth company, said Johnson Controls Chairman and CEO George Oliver . Johnson Controls is already benefiting from our transformation, which enables the unparalleled value proposition we provide to customers, and exposure to rapidly accelerating demand in the data center market and other key macro-economic tailwinds. We believe Johnson Controls is well-positioned for its next phase of growth to deliver enhanced, long-term value to shareholders.
Johnson Controls R LC HVAC business, which is reported in the Global Products segment, engineers and manufactures ducted and ductless HVAC equipment and components globally for both residential and light commercial applications. In fiscal 2023, the R LC HVAC business generated approximately 4.5 billion in consolidated revenue. Following the close of the transaction, the R LC HVAC business will continue to provide residential and light commercial HVAC products under the York and Hitachi brands as well as Coleman, Champion, Luxaire, Guardian, Evcon, TempMaster and others.
Christian Fischer , the deputy chairman of the board of management of Robert Bosch GmbH, said Johnson Controls Residential Light Commercial business has a consistent track record of excellence within the HVAC industry. Together with our future colleagues in the acquired business, we want to seize the huge opportunities offered by the market for the further growth of this new unit. The acquired entities will strengthen Boschs Home Comfort Group in an extremely attractive segment and will become part of the Bosch core business.
