The latest move: Johnson Controls has acquired Password Services Holdings Ltd., an HVAC service and solutions provider in Midlands, England. Financial terms of the deal were not disclosed.
Energy Efficient Smart Buildings for Hospitality Sector
The acquisition is particularly timely for hospitality sector companies focused on energy efficient buildings and sustainability strategies.
Password Services, founded in 1998, specializes in rooftop air conditioning in the hospitality sector. Key partners include Mitsubishi Electric, Johnson Controls and the York by Johnson Controls business. The company offers HVAC, electrical and renewable energy services -- including heat pumps and heat recovery units.
Michael Anderton, GM, HVAC-R, Johnson Controls
Password Services co-owners Richard Schlanker, Alison Adams and Elaine Tovey plan to remain with the business, as will the "full Password Services team of highly skilled and experienced engineering, service, and project delivery teams," Johnson controls said. Actual headcount figures were not disclosed.
In a prepared statement about the deal, Michael Anderton, general manager HVAC-R, at Johnson Controls, said: "Password Services is a well-recognised HVAC service and solutions provider in the UK, having built the company’s reputation on delivering outstanding service to their customers. Our two companies have a long history of working together and we are excited by the opportunity to build on our shared history."
Added Richard Schlanker, managing director at Password Services: "We are thrilled to be officially joining the Johnson Controls family. This is a great opportunity to build on what we have achieved over the last 25 years. The support of the Johnson Controls management team will allow us to grow the business into the future, and develop customer service and performance levels. We have a strong relationship with our existing customers and look forward to building on these and establishing new opportunities, together.”
Richard Schlanker, managing director, Password Services
Johnson Controls: Business Evolution
The acquisition surfaces at a key time for Johnson Controls.
For a closer look at the overall business strategy, rewind to a December 2023 earnings call with Wall Street analysts. On that call, Oliver explained how the company was betting its business on smart building technologies that align with customers' energy efficiency, sustainability and decarbonization goals.
Clearly, Johnson Controls is striving to accelerate organic business growth. But the effort remains a work in process. Indeed, the company announced sales of $7.2 billion in Q3 of 2024 -- up 1% compared to Q3 of 2023.
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