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Johnson Controls to acquire Air Distribution Technologies for $1.6 billion

Investment further expands Johnson Controls’ leadership position in buildings industry Johnson Controls (NYSE: JCI), a global multi-industrial company, today announced it has reached a definitive agreement with the Canada Pension Plan Investment Board to acquire its Air Distribution Technologies business, one of the strongest and largest independent providers of air distribution and ventilation products in North … Continued

Investment further expands Johnson Controls’ leadership position in buildings industry

Johnson Controls (NYSE: JCI), a global multi-industrial company, today announced it has reached a definitive agreement with the Canada Pension Plan Investment Board to acquire its Air Distribution Technologies business, one of the strongest and largest independent providers of air distribution and ventilation products in North America, for approximately $1.6 billion.

“This investment expands Johnson Controls’ position in the buildings space with additional products that are complementary to our existing heating, ventilation and air conditioning offerings,” said Alex Molinaroli, Johnson Controls chairman and chief executive officer. “It reflects our stated commitment to invest in the buildings business as a growth platform and further enhances our offerings and channels.”

Air Distribution Technologies produces a broad range of air distribution products under well-known brands such as Ruskin®, Titus®, Hart & Cooley®, Krueger™, PennBarry™, Tuttle & Bailey® and many others which are delivered through strong independent distribution channels. Specific product lines include grilles, registers, and diffusers (GRDs); terminal units; fire and smoke dampers and fans. Johnson Controls is a leading provider of products, services and solutions that increase energy efficiency and lower operating costs in buildings for more than one million customers.

“Air Distribution Technologies customers will have undisrupted access to the products and brands that they have come to expect.  This new channel will provide an important growth platform for Johnson Controls as we continue to pursue additional investments in new products and increase our market coverage worldwide,” said Molinaroli.

Within the Johnson Controls portfolio, Air Distribution Technologies will be aligned under the Building Efficiency platform where it will operate with its own brands, distribution channels and employees. The combination of the two companies will be jointly guided by Johnson Controls and Air Distribution Technologies leadership.

“Johnson Controls is a leader in the building technology industry that will complement our strong brands and valued relationships,” said Terry O’Halloran, chief executive officer, Air Distribution Technologies. “Our customers will now have access to an unmatched portfolio of products and offerings as well as backing and continued innovation from the best experts in the industry.”

The acquisition is subject to limited conditions and is expected to close by the end of July. Johnson Controls was advised by Goldman Sachs on strategic and financial aspects and Cleary Gottlieb Steen & Hamilton as legal representatives for this transaction.

The company will host an analyst call today at 10 a.m. CDT. It is available via webcast in the investor section ofhttp://www.johnsoncontrols.com/investors.

Forward-Looking Statements

Johnson Controls, Inc. has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In this document, statements regarding future financial position, sales, costs, earnings, cash flows, other measures of results of operations, capital expenditures or debt levels and plans, objectives, outlook, targets, guidance or goals are forward-looking statements. Words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “forecast,” “project” or “plan” or terms of similar meaning are also generally intended to identify forward-looking statements. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Johnson Controls’ control, that could cause Johnson Controls’ actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include regulatory approvals required that are material conditions for this proposed transaction to close, the strength of the U.S. or other economies, availability of raw materials and component products, currency exchange rates, and cancellation of or changes to commercial contracts, as well as other factors discussed in Item 1A of Part I of Johnson Controls’ most recent Annual Report on Form 10-K for the year ended September 30, 2013. Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this document are only made as of the date of this document, and Johnson Controls assumes no obligation, and disclaims any obligation, to update forward-looking statements to reflect events or circumstances occurring after the date of this document.

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