Tyco, Johnson Controls merger on track for savings
The new Johnson Controls, formed from the merger of Johnson and Tyco International, is on track to complete the merger in October and will be able to cut $1 billion in costs in the years ahead, executives said at an industry conference in Florida.
The Journal Sentinel website reports that the transaction will shift Johnson Controls’ corporate headquarters to Cork, Ireland, resulting in savings of $150 million on taxes, thanks to Ireland’s lower corporate tax rate. Tyco has been based in Ireland since 2014.
Other savings will be found by combining operations and saving on purchasing.
The transaction will combine a maker of heating and cooling equipment and controls for buildings with Tyco’s building fire, safety and security systems business. The Johnson Controls automotive battery business will be part of the combined company.
The Journal Sentinel article says the companies expect that technology trends, including the Internet of Things, as well as demographic trends resulting in more people moving to cities, will drive convergence in the buildings marketplace. The end result will be more building systems that can be controlled and can provide data to building managers more seamlessly.
Read the full article here.