Johnson Controls Weighs Divesting Key Security Assets

Johnson Controls International Plc is reportedly weighing the sale of two key businesses within its security division, Access Control and Intrusion Detection. These units could collectively be valued at up to $4.5 billion, according to sources familiar with the matter. The company is currently engaging financial advisors to gauge interest from potential buyers.

The deliberations are in their nascent stages, and Johnson Controls might opt to keep one or both of these security units. This potential divestiture represents the first significant portfolio restructuring since Joakim Weidemanis assumed the CEO role last year. Weidemanis has emphasized a strategic focus on simplifying the company's complex structure and enhancing operational efficiency.

The Access Control business provides solutions for safeguarding environments, including managing staff and visitor access. Concurrently, the Intrusion Detection unit offers products like sensors and detectors designed for workplace protection. These considerations follow Johnson Controls' completion last year of an approximately $8 billion sale of its residential and light commercial HVAC business to Robert Bosch GmbH.

In New York, Johnson Controls' stock closed down 3.4% at $137.21 on Wednesday, reflecting a market value of roughly $84 billion. The company's stock has seen substantial growth, increasing by approximately 75% over the past year. The industrial conglomerate's offerings span air systems, building management, HVAC controls, and security and fire safety solutions.