Johnsons Blast Off in New Direction - GWS Journeys into the Unknown

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• Johnsons Blast Off in New Direction - GWS Journeys into the Unknown

01 October 2014 | Updated 01 January 1970

Johnson Controls yesterday announced its intention to sell its Global Workplace Solutions business and to invest in businesses that are seen as core to its manufacturing, engineering and product based portfolio.

FM contract for Kennedy Space Cente

The GWS business - which has a number of different guises is a provider of facilities, corporate real estate and energy management services. It has been part of Johnson Controls' portfolio for more than 20 years and currently manages more than 1.8 billion square feet of corporate real estate. The company is still believed to be involved with NASA - having held the FM contract for Cape Canaveral or the Kennedy Space Center including mission control; ran most Ford factories and is still regularly voted one of the United States Military's most friendly companies.

Johnson Controls has had a relationship with the military since Warren Johnson’s invention of the thermostat in 1885. In 1914, prior to America's involvement in World War I (1916) Johnson Controls supplied building and temperature controls for military installations.

Controls is where Johnson Controls FM came from - a natural adjunct to its manufacturing and installation business was maintenance. This led from controls maintenance to contract cleaning, security, catering...FM.

In the nineties, Johnsons had a presence in the UK but it was its purchase of a firm of consultants, Procord, that really gave the company the uplift it needed to be recognised as one of the first Total Facilities Management companies in Britain.

GWS will continue to be a close partner to Johnson Controls as both a supplier and a customer.

The future

Said Alex Molinaroli, chairman and CEO of Johnson Contro: "The global facilities management outsourcing market is very healthy and continues to grow,". "GWS is a strong business and a leader in its market with tremendous potential to grow. As we've focused on it this past year to understand what is needed to win long-term, it is clear that GWS is really an exclusively service based business and not core to our manufacturing, engineering and product based portfolio."

"We have a strong reputation in the market, an incredibly talented team of employees and a portfolio of long-standing high quality clients," said John Murphy, vice president and president, Johnson Controls Global Workplace Solutions. "Our business has only just begun to realise its full potential. With a new owner we will have access to the capital and resources required to continue to strengthen our business and be a formidable force in the market."

Johnson Controls has retained Bank of America Merrill Lynch as exclusive financial advisor to assist once potential buyers have been identified. In the meantime it is committed to working through the process as quickly as possible to ensure minimal disruption to the business.

About Global Workplace Solutions

Johnson Controls Global Workplace Solutions has more than 16,000 employees worldwide (over 75 countries) and claims to have delivered more than $3 billion in savings for customers over the last 10 years.

About Johnson Controls

Johnson Controls is a global technology company operating in 150 countries with 170,000 employees making buildings controls, standard car batteries and those for hybrids, car interiors.

Article written by Brian Shillibeer | Published 01 October 2014

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