Johnson Controls International plc announced that it is exploring “strategic alternatives” for its Power Solutions business.

Johnson Controls’ portfolio includes two leading platforms within their respective industries:

• an integrated buildings technology and solutions business; and

• a power solutions business that is the clear global leader in providing battery solutions to the automotive sector with an advantaged position in the aftermarket.

The company said that while both of these platforms are well positioned, they are also navigating markedly different industry landscapes with unique strategic, financial and operational opportunities and requirements.

Creating shareholder value is our top priority. Our focus is on improving operational execution, realizing merger synergy and productivity benefits, and optimizing the business portfolio. Given the differing dynamics of the platforms, we are evaluating strategic alternatives for Power Solutions.

Over the years our team has built Power Solutions into an incredible business with a high-margin aftermarket model that has delivered consistent growth through business cycles. These strong fundamentals, as well as recently issued provisions of U.S. Tax Reform, will be taken into account as we review the alternatives and assess which option creates the best long-term results for the business and the most value for shareholders.

Today’s announcement also reflects our strategic priority to strengthen and invest in our global market-leading positions in HVAC, fire and security solutions and integrated Building Management Systems, which operate in attractive vertical markets with strong growth prospects.

—George Oliver, chairman and CEO

In fiscal 2017, Power Solutions generated $7.3 billion in revenue and $1.6 billion in earnings before interest, taxes, depreciation and amortization (EBITDA). Johnson Controls expects to complete its assessment of strategic alternatives over the next several months. There can be no assurances as to the form and timing of any transaction as a result of this strategic review, or if a transaction will be consummated, and any final decision remains subject to approval by the Johnson Controls Board of Directors. Johnson Controls does not intend to make any further public statements until a specific determination has been made.

To assist the Company in its review, Johnson Controls has retained Centerview Partners as financial advisors.