Johnson Controls announced that it has completed the previously announced sale of its Scott Safety business to 3M for approximately $2.0 billion. Scott Safety is a leader in high performance respiratory protection, gas and flame detection, thermal imaging and other critical products and is expected to generate sales of approximately $575 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $160 million in fiscal 2017.
Net cash proceeds from the transaction were $1.9 billion, and will be used to repay a portion of Tyco International Holding Sarl’s $4.0 billion of merger related debt. For fiscal 2018, dilution related to the sale of Scott Safety is expected to be fully offset by lower net financing charges, a lower effective tax rate resulting from the transaction, as well as the benefit of share repurchases completed in fiscal 2017.
Source: PR Newswire