CPPIB sells Air Distribution unit to Johnson Controls for $1.6B
Investment board bought Texas-based from Tomkins plc in 2012 for $1.1-billion
TORONTO—The Canada Pension Plan Investment Board (CPPIB) said it is selling Air Distribution Technologies, Inc. for $1.6-billion—a $500-million premium over what it paid for the firm in 2012.
According to investment management unit, it has entered an agreement with Johnson Controls Inc. to sell Air Distribution in a deal worth $1.6-billion.
The CPPIB bought the unit from British engineering firm Tomkins plc in 2012 for $1.1-billion.
Based in Texas, Air Distribution makes air distribution and ventilation solutions for residential and commercial buildings, as well as air movement and control solutions for industrial and infrastructure applications.
“We have thoroughly enjoyed partnering with CPPIB and their support has been an important part of our success,” Air Distribution CEO Terry O’Halloran said in a statement.
“The acquisition by Johnson Controls and integration into their buildings business will extend our product portfolio and global network and position us for accelerated growth.”
The sale is expected to close by the end of July 2014, subject to closing conditions and regulatory approvals.