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Market commentary May 2016 Verified

Synergy Expectations and Strategic Rationale for Merger

Management detailed $650 million in synergies, broken down into $150 million tax and $500 million operational savings. The strategic combination aims to merge commercial HVAC and building controls with commercial fire and security to enhance service offerings and data analytics.

“The strength of this transaction is the compelling value created by the strategic combination of the leading player in commercial HVAC and building controls, with the leading player in commercial fire and security.”

Entities

Tyco · Acquirer Johnson Controls, Inc. · Target
HVAC Sentiment: Positive

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