Johnson Controls to Buy York in $2.4-Billion Deal

Auto parts and industrial systems supplier Johnson Controls Inc. is buying York International Corp., which makes ventilation, air conditioning and refrigeration equipment, for about $2.4 billion.

Milwaukee-based Johnson Controls said Wednesday that the deal would nearly double its presence in the growing building-environments industry.

Johnson said it had offered $56.50 a share in cash for York, Pa.-based York International, a 35.3% premium above York’s closing price of $41.75 on Wednesday. The deal was announced after the market close.

It also would assume about $800 million in York’s debt in the deal.

Johnson said the acquisition would make it the largest global provider to the high-margin building services market.

York posted 2004 sales of $4.51 billion, and Johnson Controls’ sales totaled $26.55 billion. York would be combined with its nearly $6-billion controls group, Johnson Controls said.

York is expected to modestly boost Johnson’s earnings per share in fiscal 2006.

Analysts expect Johnson to earn $4.99 a share for the fiscal year, according to a Thomson Financial survey.