Bank of America Merrill Lynch to advise on proposed Johnson Controls' Global Worplace Solutions (GWS) divestment

Announcement represents the latest initiative to re-focus the company on "core", higher-margin businesses, following the disposal of Johnson Controls' automotive electronics businesses in 2013.

Johnson Controls has appointed Bank of America Merrill Lynch to advise on a proposed divestment of its facilities, corporate real estate and energy management business which was announced yesterday.

Global Workplace Solutions (GWS) manages more than 1.8 billion square feet of corporate property assets for blue-chip clients including Shell, BASF and Agilent. According to a recent Strategic Review by the company's parent, the facilities management subsidiary's operating margin of between 2.3 and 2.5 per cent is significantly lower than those of "core" manufacturing, engineering and product-based subsidiaries.

Since his election as Johnson Controls' President and CEO in 2013, Alex Molinaroli has embarked on an ambitious programme to re-focus the company on higher-margin businesses which has resulted in the transformation of GWS's higher-margin Building Efficiency division into a separate business unit, and the sale of a major automotive electronics business to global component manufacturers, Gentex and Visteon.

Welcoming yesterday's announcement, Johnson Controls' Global Workplace Solutions President, John Murphy, said: "Our business has only just begun to realize its full potential. With a new owner we will have access to the capital and resources required to continue to strengthen our business and be a formidable force in the market."