(Bloomberg) -- Johnson Controls International Plc is kicking off the sale process of its ADT alarms business, which could be worth about $2 billion in a deal, according to people familiar with the matter.
The company is working with Citigroup Inc. to gauge interest from potential buyers of the unit, said the people, who asked not to be identified as the information is private. Advent International, Bain Capital, CVC Capital Partners Plc and Triton are among the buyout firms that are studying the asset, the people said.
Deliberations are in the early stages and the potential suitors could decide not to proceed with any offers, according to the people. Johnson Controls may also opt to keep the assets, they said. Representatives for Johnson Controls, Citigroup and the private equity firms declined to comment.
Johnson Controls has been working to overhaul its portfolio to become a pure-play provider of systems for commercial buildings. In July, the company agreed to sell a collection of heating and ventilation assets to Robert Bosch GmbH in an $8 billion deal. It’s also been under pressure from activist investors including Elliott Investment Management, which has built a large position in the company that’s worth more than $1 billion.
Tracing its roots to 1874, ADT manufactures security and monitoring systems for households. Its products include burglar alarms, surveillance cameras and smoke detectors.
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