Johnson Controls
| Company type | Public limited company |
|---|---|
| Industry | Conglomerate (fire protection, HVAC, security solutions) |
| Founded | 1885 |
| Founder | Warren S. Johnson |
| Headquarters | Cork , Ireland |
Area served | Worldwide (nearly 2,000 sites across six continents) |
Key people | George Oliver (Chairman and CEO) |
| Products | Fire protection, HVAC systems, security solutions, building management platforms, automotive batteries (former), automotive seating (former) |
Number of employees | 105,000 (2019) |
| Website | www |
Johnson Controls International plc is a multinational conglomerate with American origins, currently headquartered in Cork, Ireland. The company specializes in manufacturing fire protection, HVAC, and security solutions for buildings. By mid-2019, Johnson Controls employed around 105,000 individuals operating from nearly 2,000 sites across six continents. In 2017, it was ranked 389th on the Fortune Global 500 list. However, after moving its headquarters outside the United States, it no longer qualified for inclusion in the Fortune 500 ranking.
The formation of Johnson Controls International plc resulted from the merger between the American-based Johnson Controls and Tyco International, announced on January 25, 2016. This strategic consolidation offered tax benefits related to foreign operations and produced substantial financial rewards for then-CEO Alex Molinaroli.
History
The origins of Johnson Controls date back to 1883 when Warren S. Johnson, a professor at the University of Wisconsin–Whitewater, invented the first electric room thermostat, laying the foundation for the building control sector. Together with Milwaukee investors led by William Plankinton, Johnson established the Johnson Electric Service Company in 1885 to develop automatic temperature control systems for buildings. Following Johnson’s passing in 1911, the company concentrated its efforts on temperature regulation systems for commercial buildings.
In 1970, Johnson expanded by acquiring Standard Electric Time Company, a clock manufacturer. The firm rebranded as Johnson Controls in 1974 and acquired battery producer Globe-Union in 1978 while divesting Standard Electric Time to Faraday. The company further diversified into automotive seating with the purchases of Hoover Universal and Ferro Manufacturing in 1985.
The acquisition of Pan Am World Services in 1989 considerably broadened Johnson Controls’ facilities management capabilities, including services at airports, military installations, and U.S. space centers. This move helped reduce dependency on the fluctuating construction sector; by 1988, facilities maintenance contributed approximately one-third of total revenue.
During the economic downturn from 2007 to 2009, then-president Keith Wandell actively engaged with Congress to secure bailout assistance supporting Johnson Controls’ supply chain operations. The company shuttered its Lakeshore plant in Ontario in 2010 and sold off the site. In 2013, Stephen Roell stepped down as CEO and chairman, with Alex Molinaroli succeeding him in both roles.
Later developments
On 31 October 2016, Johnson Controls separated its Automotive Experience segment, establishing Adient as an independent public company listed on the New York Stock Exchange. Subsequently, in March 2017, it divested its safety equipment division, Scott Safety, to 3M for $2 billion.
George Oliver assumed the roles of chairman and CEO on 1 September 2017, advancing the leadership transition timeline by half a year.
On 12 May 2021, Johnson Controls expanded its portfolio by acquiring Silent-Aire, a Canadian expert in data center cooling technology, with an initial payment of $630 million and additional contingent payments potentially reaching $870 million based on performance targets.
In October 2021, the firm collaborated with Ava Robotics to introduce the Tyco Security Robot, a fully autonomous security solution.
In September 2023, Johnson Controls experienced a ransomware cyberattack that impacted several components of its IT infrastructure, necessitating immediate shutdowns of affected systems.
By July 2024, the company announced plans to sell its heating and ventilation operations to Germany’s Bosch Group for $6.7 billion.
Women's labor rights
In 1982, Johnson Controls adopted a "fetal protection policy" that prohibited women from working on battery production lines due to potential fetal health risks. Women were only permitted in these roles if they provided medical proof confirming their inability to conceive.
In April 1984, the United Automobile Workers filed suit against Johnson Controls representing three employees impacted by this policy: Mary Craig, who underwent sterilization to maintain her employment; Elsie Nason, who lost benefits following reassignment from a lead-exposed position; and Donald Penney, who was denied leave intended to lower his blood lead levels before becoming a father. The Supreme Court ruled in favor of these plaintiffs in 1991, establishing a precedent that employers cannot discriminate based on reproductive capacity over economic rights.
Operational divisions
The company’s primary concentration is Building Efficiency.
Building Technologies and Solutions
This division is responsible for designing, manufacturing, installing, and servicing HVAC systems, industrial refrigeration units, building management platforms, fire safety and security solutions, as well as mechanical equipment for both commercial and residential properties. Prominent brands under this segment include York, TempMaster, Metasys, Panoptix, Frick, and Sabroe. The division also assists clients in lowering energy usage and operational expenses through retrofitting existing structures and implementing energy-efficient new builds.
Significant undertakings include the retrofit of the Empire State Building and enhancing energy performance at Dubai’s Burj Khalifa. Building Technologies & Solutions represents Johnson Controls’ longest-established branch, with roots dating back to 1885 following the patenting of the electric thermostat in 1883. By 2012, it operated from approximately 700 locations across more than 150 countries.
Johnson Controls was named in a federal lawsuit concerning the 1986 Dupont Plaza Hotel fire in Puerto Rico. Plaintiffs claimed that an installed energy management system failed to provide timely fire alerts. After a nine-month trial period, the court directed a verdict clearing Johnson Controls of liability. The total damages awarded against all defendants involved reached roughly $221 million.
Power Solutions
On 1 May 2019, this division was divested to Brookfield Business Partners and subsequently rebranded as Clarios.
The Power Solutions segment specialized in the design and production of automotive batteries for a range of vehicles including passenger cars, trucks, utility vehicles, motorcycles, golf carts, and boats. It provided more than one-third of the global supply of lead-acid batteries to automobile manufacturers and aftermarket retailers such as Wal-Mart, Sears, Toyota, and BMW. Prominent lead-acid battery brands under this unit included Continental, OPTIMA, Heliar, LTH, Delkor, and VARTA. Additionally, it developed lithium-ion cells and battery systems tailored for hybrid and electric vehicles like the Ford Transit Connect electric van and Mercedes S-Class 400 hybrid. The unit also manufactured absorbent glass mat (AGM) and enhanced flooded batteries (EFB) designed for Start-Stop vehicles including the Chevy Malibu and Ford Fusion.
By 2012, Power Solutions maintained operations across 60 facilities worldwide. On 13 November 2018, Johnson Controls reached an agreement to sell this division to Brookfield Business Partners for $13.2 billion.
Automotive Experience
This segment was separated into an independent entity named Adient on 31 October 2016.
Global WorkPlace Solutions
The Global WorkPlace Solutions division offered outsourced facilities management services globally, overseeing corporate real estate functions such as property acquisition, lease management, and construction projects. On 23 September 2015, CBRE, Inc. acquired this unit while preserving the "Global Workplace Solutions" branding.
Joint Ventures
- Amaron: A partnership with Amara Raja Batteries in India established in December 1997 to manufacture automotive batteries under the "Amaron" brand name. This collaboration concluded on 1 April 2019.
- Brookfield Johnson Controls: Formed in 1992 alongside Brookfield Properties to manage commercial properties in Canada; expanded in 2013 to include Australia and New Zealand through Brookfield Asset Management. Johnson Controls exited this venture in 2015; it continued operations as Brookfield Global Integrated Solutions.
- Diniz Johnson Controls: A joint enterprise with Diniz Holding in Turkey producing automotive seating solutions for leading OEMs.
- Johnson Controls Hitachi: Established in Japan in 2015 with Hitachi, concentrating on RAC, PAC, VRF systems, and chillers.
- Johnson Controls-Saft Advanced Power Solutions: Initiated in January 2006 as a collaboration with French battery manufacturer Saft Groupe S.A. aimed at developing lithium-ion batteries for hybrid vehicles. Facilities were located in France, Germany, and the United States.
Due to operational difficulties and divergent strategic goals, Johnson Controls pursued termination of the Saft joint venture. In May 2011, it sought dissolution of the partnership and consented to pay Saft $145 million for its equity stake and technology rights. Johnson Controls retained ownership of the Michigan facility while Saft assumed control over operations in France.
Coleman Heating & Air Conditioning
Coleman Heating & Air Conditioning is a leading HVAC equipment brand with origins as an independent firm. It originated as a division within the Coleman Company in 1958, was acquired by Evcon in 1990, followed by purchase by Johnson Controls in 1996. Recognized among the top twelve furnace brands in the United States, Coleman received an average rating of 3.7 out of 5 stars according to Gas Furnace Guide.
York International
York International was founded in York, Pennsylvania in 1874, where it established its reputation as a manufacturer of HVAC and refrigeration products. In August 2005, Johnson Controls acquired York for $3.2 billion. At the time of the acquisition, York was recognized as the largest independent producer globally of air conditioning, heating, and refrigeration systems. Its previous stock ticker was YRK.
Manufacturing
Johnson Controls maintains HVAC production facilities in Wichita, Kansas, and Norman, Oklahoma. The Wichita plant specializes in manufacturing residential unitary equipment such as air conditioners, furnaces, and heat pumps for the North American market under brands including York and Coleman. Meanwhile, the Norman facility is dedicated to producing rooftop units (RTUs) intended for commercial use.
Merger with Tyco
On January 25, 2016, Johnson Controls announced its merger with Tyco International, resulting in the formation of Johnson Controls International plc, headquartered in Cork, Ireland. Finalized in September 2016, this merger transformed Johnson Controls into an Irish-registered company, enabling it to benefit from substantially lower corporate tax rates through a tax inversion strategy. Following this restructuring, the company reduced its workforce by 52% between 2016 and 2022—a continuation of significant layoffs after acquiring York International in 2005, when employee numbers dropped by 76%.
The merger faced criticism from public figures such as Hillary Clinton, who condemned the company’s tax avoidance efforts despite receiving government assistance during the 2008 financial crisis. Fortune labeled the transaction as "outrageous." Johnson Controls anticipated annual savings near US$150 million by minimizing U.S. tax liabilities.
Tyco international scandal
In 2002, former chairman and chief executive Dennis Kozlowski along with ex-chief financial officer Mark H. Swartz were charged with embezzling over US$150 million from Tyco. Both defendants argued that their actions had board approval during their 2004 trial.
After a mistrial caused by juror intimidation, Kozlowski testified during a retrial admitting that his compensation package was "confusing" and excessive but denied any criminal wrongdoing. On June 17, 2005, both men were convicted on most counts and faced sentences up to 25 years; they ultimately received minimum prison terms of eight years and four months.
In May 2007, Tyco resolved a class action lawsuit by agreeing to pay $2.92 billion in damages alongside an additional $225 million from PricewaterhouseCoopers to shareholders who suffered losses due to fraud.
Kozlowski was released on parole in January 2014 from Lincoln Correctional Facility located in New York City.
Bribery charges in China
In 2016, Johnson Controls agreed to pay $14.4 million to settle allegations brought under the Foreign Corrupt Practices Act by the SEC. The SEC determined that employees of China Marine—a Johnson Controls subsidiary—used fictitious vendors to funnel $4.9 million in bribes to Chinese state-owned shipyards to secure contracts and personal benefits.