Johnson Controls acquires York

York, which has sales of around £2.7bn, will become part of Johnson’s Controls Group. Johnson is also a major player in the automotive systems market.

Johnson claim the deal will benefit the firm by giving it a stronger position in the growing international markets, especially China, Central Europe, Latin America and the Middle East.

John Barth, chairman and ceo of Johnson Controls, says “With the addition of York, we will have enhanced HVAC&R, controls, fire and security capabilities.

“Bringing together our two organisations will create the largest building services force in the world, putting us in a strong position to capture an increased share of the fragmented £72bn global services market for commercial buildings.”

Benefits as a result of the transaction include the ability to provide customers with bundled HVAC&R equipment and controls, as well as access to 500 sales and services offices in over 125 countries with 55,000 employees The combined company expects to generate revenues of £6bn in the building environments industry for 2005.

The UK building controls market is worth £489m, according to the the Building Controls Industry Association – an increase of £46.2m on 2003 figures.

North America and Europe accounted for 53% and 39% respectivley of Johnson’s revenue in 2004, with controls representing 21% of sales.