UPDATE 1-Johnson Controls considers selling some HVAC assets for $5bln – Bloomberg News

(Adds details from report, background throughout)

Jan 26 (Reuters) – Building products provider Johnson Controls is considering selling some of its heating, ventilation and air conditioning (HVAC) assets for $5 billion, Bloomberg News reported on Friday.

According to the report, which cited people with knowledge of the matter, Johnson’s possible asset sale includes most of its York International operations it acquired in 2005.

Shares of the company rose nearly 1% in afternoon after the news.

Johnson Controls did not immediately respond to a Reuters request for comment.

The company is also working on a possible sale of the majority of its Air Distribution Technologies business it bought for $1.6 billion in 2014, the report said.

Johnson in December forecast adjusted profit below estimates for fiscal 2024 and missed expectations for fourth-quarter earnings, pressured by weakness in the global residential construction market.

Property firms around the globe have faced headwinds resulting from a sharp rise in labor and borrowing costs over the past few years, hurting companies such as Johnson Controls, which provides products to these companies.

(Reporting by Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri)

(c) Copyright Thomson Reuters 2024. Click For Restrictions – https://agency.reuters.com/en/copyright.html