Johnson Controls to raise $1.7 bln to buy CPPIB’s Air Distribution

U.S. multi-industrial company Johnson Controls Inc, which in April agreed to buy Air Distribution Technologies Inc from Canada Pension Plan Investment Board (CPPIB), has launched a public debt offering to help pay for the deal. The company expects to receive approximately US$1.68 billion of net proceeds from the offering of fixed rate senior notes. CPPIB acquired the Dallas-based Air Distribution from Tomkins Plc in 2012 for US$1.1 billion, of which about US$500 million was funded with equity from CPPIB. It anticipates proceeds of around US$1 billion from the company’s sale to Johnson Controls.


Johnson Controls prices $1.7 billion senior notes offering

MILWAUKEE, June 10, 2014 /PRNewswire/ — Johnson Controls, Inc. JCI -0.68% (the “Company”), a global multi- industrial company, today announced that it priced a public offering of $1.7 billion aggregate principal amount of fixed rate senior notes consisting of the following:

$300 million of senior notes that mature in 2017 and bear interest at a rate of 1.400%,

$500 million of senior notes that mature in 2024 and bear interest at a rate of 3.625%,

$450 million of senior notes that mature in 2044 and bear interest at a rate of 4.625%, and

$450 million of senior notes that mature in 2064 and bear interest at a rate of 4.950%.

The Company expects that it will receive approximately $1.68 billion of net proceeds from the offering after deducting underwriting discounts and commissions and expenses of the offering. The Company intends to use the net proceeds from the offering to finance the Company’s previously announced acquisition of Air Distribution Technologies and for general corporate purposes.

Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc., Citigroup Global Markets Inc. and Wells Fargo Securities, LLC are serving as joint book-running managers for the offering.

The offering is being made under the Company’s shelf registration statement filed with the Securities and Exchange Commission and only by means of a prospectus supplement and accompanying prospectus. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from either Goldman, Sachs & Co., Attention: Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, or by emailing ; or Merrill Lynch, Pierce, Fenner & Smith Incorporated, Attention: Prospectus Department, 222 Broadway, 11th Floor, New York, New York 10038, telephone: 1-800-294-1322 or by e-mailing .

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Johnson Controls Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 170,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful. In 2014, Corporate Responsibility Magazine recognized Johnson Controls as the #12 company in its annual “100 Best Corporate Citizens” list.

CONTACT: Fraser Engerman (media) Glen Ponczak (investors)

SOURCE Johnson Controls, Inc.

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