JOHNSON Controls has announced its intention to buy US hvacr equipment manufacturer York for £1.8bn ($3.2bn). The deal, which has been approved by the boards of directors of both companies, will include the assumption of approximately £443m ($800m) of York debt. The deal is expected to be completed in December and is subject to shareholder approval and regulatory approvals.
York has estimated sales of nearly £2.8bn ($5bn), against the Controls Group of Johnson Controls's sales of close-on £3.3bn ($6bn).
As a result of the acquisition, Johnson Controls will design and sell integrated controls and hvacr equipment, making it the largest global provider to the building services market.
York International has its UK headquarters in Basildon, from where it manufactures more than 1,500 chillers and heat pumps each year, most of which are exported.
In addition to Basildon, the company has seven main UK offices located in Birmingham, Bristol, Cardiff, Gateshead, Glasgow, Manchester, Newbury (Controls Group) and Slough. Other York-owned companies in the UK include compressor remanufacturer Preston Refrigeration.
York also has two offices in Ireland and 18 further sales and service operations around the country.