What Will Be Johnson Controls’ Revenue By Geography Post The Tyco Merger?

-0.50%
Downside
65.32
Market
64.99
Trefis
JCI: Johnson Controls logo
JCI
Johnson Controls

Johnson Controls (NYSE:JCI) announced a merger agreement with Tyco, a global fire and security provider, to create a combined company with $32 billion in revenues, post the Adient spin-off. Under the terms of the agreement, Johnson Controls’ shareholders will hold a 56% equity stake in the combined company, and will receive a cash consideration of ~$3.9 billion, with Tyco owning approximately 44% of the equity. The combination of highly complementary businesses facilitates the new company to offer comprehensive and innovative solutions to a wider market globally, and across numerous end markets. JCI has a broad geographic exposure in North America and Asia, while Tyco has exposure in North America and Europe. Hence, the geographic fit seems to be ideal, with JCI strong in the Chinese market, and Tyco effective in Europe.

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