Activist Investor Elliott Acquires Major Stake In Johnson Controls: Report

Elliott Investment Management, an activist investor, has reportedly amassed a significant stake in Johnson Controls International Plc JCI, valued at over $1 billion, making it one of the company’s top ten investors.

The development comes as Johnson Controls’ performance has been trailing behind its industry peers.

In the past year, Johnson Controls’ shares have climbed over 9%, giving it a market valuation of approximately $46.5 billion, while competitors such as Carrier Global Corp. CARR and Lennox International Inc. LII saw their stocks increase by over 50%, and 70% respectively.

Johnson Controls is a major player in the HVAC control market, which has grown due to the need for cooling data centers and manufacturing facilities for semiconductors and electric vehicles, reported Bloomberg. 

The company, headquartered in Ireland with main offices in Milwaukee, is under the leadership of CEO George Oliver, who previously led Tyco International before its merger with Johnson Controls in 2016. 

The firm has experienced several executive changes since 2020, including the recent appointment of Marc Vandiepenbeeck as CFO.

Although Elliott’s specific plans for Johnson Controls remain undisclosed, the hedge fund has a history of driving executive changes in its portfolio companies, the report further noted.

Recently, Sensata Technologies Holdings Plc’s ST CEO left after a cooperation agreement with Elliott, and Crown Castle Inc.’s CCI CEO retired amid a proxy battle, leading to a settlement with Elliott. Similarly, NRG Energy Inc.’s NRG top executive departed following an agreement with the activist investor.

Johnson Controls manufactures a wide range of products, including fire detection, refrigeration, security, and HVAC equipment for commercial buildings. 

Additionally, Johnson Controls is reportedly considering selling its ADT alarms unit.

Earlier this month, Johnson Controls reaffirmed its full-year forecast for adjusted earnings per share between $3.60 and $3.75, after revising the projection downward in January from $3.65 to $3.80.

Price Action: JCI shares are trading higher by 4.62% at $72.21 in premarket at the last check Monday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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