05:40 AM EDT, 07/23/2024 (MT Newswires) -- Johnson Controls International ( JCI ) said Tuesday it has agreed to sell its Residential and Light Commercial heating, ventilation and air conditioning business in an all-cash transaction to Bosch Group.

The total transaction is valued at $8.1 billion, of which the company's consideration is about $6.7 billion.

The transaction includes the North America Ducted business and the global Residential joint venture with Hitachi, of which Johnson Controls ( JCI ) owns 60% and Hitachi owns the remaining 40%.

Under the deal, Hitachi will retain certain ductless HVAC assets in Shimizu, Japan.

Net cash proceeds to Johnson Controls ( JCI ) are expected to be about $5 billion posttax and transaction-related expenses. The company plans to pay down debt to the extent required to retain its investment-grade rating with the remaining proceeds to be returned to shareholders.

The transaction is expected to close in about 12 months. The company said the transaction will simplify its portfolio with an enhanced strategic focus in line with its objective to be a pure-play provider of comprehensive services for commercial buildings.

Johnson Controls ( JCI ) also expects fiscal Q3 adjusted earnings per share to be "slightly ahead" of its previously issued guidance range of $1.05 to $1.10. Analysts polled by Capital IQ expect $1.08.