Merger Synergies and Growth Strategy in Building Solutions

The combined company expects to achieve over $1 billion in synergies, including $650 million in deal synergies and $400 million in G&A savings, by consolidating operations, enhancing procurement, and integrating business units. The merger aims to leverage IoT platforms and direct channels to accelerate growth in the building and energy solutions market.

“The combination is going to create $1 of earnings per share over the next three years. Now this takes into account the productivity that was committed in the three-year plans that Johnson Controls and Tyco had already announced, the net total cost out. And within Johnson Controls, over the next three years, was $300 million; within Tyco it’s $100 million. And that combines with the deal synergies that we identified, the $650 million which is broken out to $500 million of operational synergies and $150 million of tax synergies.”

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