Rumors circulated this week after a Bloomberg article and comments by Johnson Controls CEO, George Oliver, suggested we may see a potential sale of their residential and light commercial HVAC equipment business. Johnson Controls has described the situation as “early stages” but in this research note, we look at recent activities and trends to consider the potential shape of such a deal. “The management team continues to simplify and transform the company into a comprehensive solutions provider for commercial buildings,” Oliver was quoted in Johnson Controls Q1 2024 earnings release. “As part of the continuous evaluation of our portfolio, we are in the early stages of pursuing strategic alternatives of our non-commercial businesses, in line with our objective to maximize value to our shareholders.” Questioned later, during the associated earnings call with Wall Street analysts, Oliver said the potential asset sale would represent less than 25% of Johnson Controls business portfolio, which Memoori estimates at […]