The body that manages investments for the Canada Pension Plan has agreed to sell Air Distribution Technologies Inc. to Johnson Controls in a deal worth approximately $1.6 billion.
According to Milwaukee, Wis.-based Johnson Controls, the acquisition will provide it with products that are complementary to its current heating, ventilation, and air conditioning lineup. Johnson Controls’ Power Solutions business unit manufactures lead-acid automotive batteries and advanced batteries for Start-Stop, hybrid and electric vehicles; its Automotive Experience business unit provides automotive seating, overhead systems, door and instrument panels, and interior electronics.
The Dallas-based Air Distribution Technologies makes air movement and control solutions for industrial and infrastructure applications. The Canada Pension Plan Investment Board bought Air Distribution from British engineering firm Tomkins plc in 2012 for $1.1 billion.
The sale is expected to close by the end of July 2014, subject to closing conditions and regulatory approvals.