Johnson Controls to raise $1.7 bln to buy CPPIB's Air Distribution

U.S. multi-industrial company Johnson Controls Inc, which in April agreed to buy Air Distribution Technologies Inc from Canada Pension Plan Investment Board (CPPIB), has launched a public debt offering to help pay for the deal. The company expects to receive approximately US$1.68 billion of net proceeds from the offering of fixed rate senior notes. CPPIB acquired the Dallas-based Air Distribution from Tomkins Plc in 2012 for US$1.1 billion, of which about US$500 million was funded with equity from CPPIB. It anticipates proceeds of around US$1 billion from the company's sale to Johnson Controls.

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