Johnson Controls Announces The Acquisition Of Hybrid Energy AS To Enhance Industrial Heat Pump Portfolio

Johnson Controls, the globally renowned company for smart, healthy and sustainable buildings, announced that it acquired Hybrid Energy AS, a growing provider of high-temperature energy management solutions with a focus on heat pumps for district heating and industrial processes.

The unique technology of Hybrid Energy will provide new, cost-effective solutions to customers, while addressing decarbonization and sustainability efforts in Europe and beyond.

Sustainable energy management technologies

Hybrid Energy is well positioned in its ability to deliver extremely high-temperature process heating"

“It's an exciting time in our industry as we come together to bring the next generation of safe, sustainable energy management technologies to market,” says Claude Allain, President, Johnson Controls HVAC/R and Data Centers.

Claude Allain adds, “Hybrid Energy is well positioned in its ability to deliver extremely high-temperature process heating, while maintaining energy efficiency – and with the reach and resources of Johnson Controls, we will be able to solve the challenges of more customers. As we help reduce the energy consumption in buildings, our customers will benefit from a single, trusted source for heating solutions.”

Acquisition of Hybrid Energy AS

Hybrid Energy AS, based in Lysaker, Norway, will add to the ability of Johnson Controls to address high-temperature heating requirements with a hybrid heat pump as its core. Through patented technology, Hybrid Energy solutions can achieve temperatures greater than 100 degrees Celsius using ultra-low-global warming potential natural refrigerants.

With rapidly increasing market potential, solutions such as those of Hybrid Energy will help the European Union (EU) reduce greenhouse gas (GHG) emissions 55 percent by 2030 and achieve the Green Deal of being climate neutral by 2050, all while reducing reliance on fossil fuels.

Many countries diversifying energy sources

“With many countries diversifying energy sources, now is the time for clean energy technologies to become available for use on a global scale,” said Rune Rinann, the Chief Executive Officer (CEO) of Nordic Technology Group AS.

Rune Rinann adds, “Between Hybrid Energy’s unique heat pump technologies, the reach and capability of Johnson Controls and the collective brain power from both, we'll help advance a sustainable future by setting the standard for high-temperature industrial heat pumps.”

Financial terms of the transaction were not disclosed.

Johnson Controls’ Cautionary Statement

Johnson Controls has made statements in this communication regarding the acquisition of Hybrid Energy AS

Johnson Controls International plc has made statements in this communication regarding the acquisition of Hybrid Energy AS that are forward-looking and therefore, they are subject to risks and uncertainties.

All statements in this document other than statements of historical fact are, or could be, ‘forward-looking statements’ within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" and terms of similar meaning are also generally intended to identify forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking.

Subject to numerous important risks and other factors

Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Johnson Controls’ control, that could cause the expected impact of the acquisition of Hybrid Energy to differ materially from those expressed or implied by such forward-looking statements, include, among others, risks related to the ability to realize the anticipated benefits of the acquisition, including the possibility that expected synergies will not be realized or will not be realized within the expected time frame; delays in the successful integration of Hybrid Energy and its technologies; unfavorable reaction to the acquisition by customers, competitors, suppliers and employees, disruption from the transaction making it more difficult to maintain business and operational relationships; significant transaction costs; and unknown liabilities.

Johnson Controls' Annual Report on Form 10-K

Other factors that could cause Johnson Controls’ actual results to differ materially from those expressed include, among others risks included in the section entitled "Risk Factors" in Johnson Controls' Annual Report on Form 10-K for the 2021 fiscal year filed with the SEC on November 15, 2021, which is available at www.sec.gov and www.johnsoncontrols.com under the "Investors" tab. The description of certain of these risks is supplemented in Item 1A of Part II of Johnson Controls' subsequently filed Quarterly Reports on Form 10-Q.

Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this communication are made only as of the date of this document, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this communication.