Johnson Controls has officially completed the sale of its Residential and Light Commercial HVAC business to the Bosch Group in an all-cash transaction valued at $8.1 billion. The move marks a strategic shift for Johnson Controls as it sharpens its focus on smart building technologies and service-driven solutions. The company received approximately $5 billion in net cash proceeds after taxes and related expenses.

Included in the deal are the company’s North American ducted HVAC operations and its global residential joint venture with Hitachi, Ltd. Hitachi, however, will retain certain ductless HVAC assets located in Shimizu, Japan. Johnson Controls plans to return part of the proceeds to shareholders through a $5 billion accelerated share repurchase program, expected to begin in the coming weeks.

CEO Joakim Weidemanis described the transaction as a key milestone in the company’s evolution toward becoming a more profitable and innovation-led business. The company also thanked the HVAC team for their contributions and wished them success under Bosch ownership. Financial advisors on the deal included Centerview Partners and Citi, with Simpson Thacher providing legal counsel. “I’m confident in our ability to reach our full potential as a faster-growing, technology-based company that delivers greater value for customers, employees, and shareholders,” said Weidemanis.