From The Associated Press
MILWAUKEE, WI — Johnson Controls Inc. is buying York International Corp., which makes ventilation, air-conditioning and refrigeration equipment, for about $2.4 billion in cash.
Milwaukee, WI-based Johnson Controls, which makes auto parts and industrial systems, said Wednesday the deal would nearly double its presence in the growing building environments industry. As part of the deal, Johnson will also assume about $800 million in York’s debt.
Johnson said it has offered $56.50 per share in cash for York, Pa.-based York International, a 35.3 percent premium above York’s closing price of $41.75 Wednesday on the New York Stock Exchange.
“The transaction will enable us to become a single source of integrated products and services that building owners want in order to optimize comfort and energy efficiency,” Johnson Chairman and CEO John M. Barth said.
York received no competing offers for its business, said Helen Marsteller, vice president for investor relations, who added that “the company was not for sale.”
York manufactures and services heating and cooling equipment, and Johnson Controls installs and maintains the technology that controls that equipment.
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