On September 2016, Johnson Controls and Tyco completed a merger of equals to create a global leader in buildings and energy. Shareholders of Johnson Controls received 1.28 common shares of the new company, now named Johnson Controls International plc (NYSE: JCI), for each Johnson Controls share held.
The merger combined complementary portfolios, technologies, products, services, geographies, installed bases, and channels to accelerate growth and drive shareholder value creation.
Portfolio
The combined company has a diversified business portfolio with strong positions in its end markets. The building portfolio includes HVAC equipment, fire and security solutions, Building Management Systems (BMS), controls solutions, and services. The automotive experience portfolio includes seat comfort systems, interiors systems, batteries, and electronics solutions.
Global reach
The global reach of the new company is extensive with operations in more than 150 countries and approximately 130,000 employees worldwide. The pro forma combined company would have had 2016 revenues of $30 billion. post-merger,Johnson Controls is now organized into four business segments: Buildings (51%), Automotive Experience (32%), Global Work Place Solutions (10%), and Power Solutions (7%).
Income from continuing operations attributable to Johnson Controls was $2.5 billion in 2016 on a pro forma basis. Adjusted earnings per share from continuing operations were $1.91 in 2016 on a pro forma basis. Free cash flow was $3.1 billion in 2016 on a pro forma basis. The Company generated $4.2 billion of free cash flow after capital expenditures of $1.1 billion in 2016 on a pro forma basis.
Conclusion:
The merger of Johnson Controls and Tyco has created a global leader in buildings and energy with complementary portfolios, technologies, products, services, geographies, installed bases, and channels to accelerate growth and drive shareholder value creation. The new company has a diversified business portfolio with strong positions in its end markets and extensive global reach with operations in more than 150 countries and approximately 130 000 employees worldwide.
Income from continuing operations attributable to Johnson Controls was $2.5 billion in 2016 on a pro forma basis while adjusted earnings per share from continuing operations were $1.91 in 2016 on a pro forma basis..Free cash flow was also positive for the year at $3.1 billion while the company generated $4.2 billion of free cash flow after capital expenditures of $1 .1 billion .Looking ahead ,the newly formed company is well positioned to capitalize on the growing demand for its products and services around the world .
