Purchase will increase Johnson Control's growth, according to the company.

MILWAUKEE - Johnson Controls Inc. announced Aug. 24 it had purchased HVACR equipment maker York International Corp.

Under the agreement approved by the boards of directors of both companies, Johnson Controls will acquire York in an all-cash transaction in which York shareholders will receive $56.50 for each outstanding share of York common stock. The total value of the acquisition is approximately $3.2 billion, including the assumption of approximately $800 million in York debt.

According to Johnson Controls, the purchase is expected to increase the company's rate of growth in the $200 billion global building industry.

Under the agreement, Johnson Controls will design and sell integrated controls and HVACR equipment and hopes to capitalize on opportunities to supply products and services to customers.

"Johnson Controls and York are ideal partners, and this transaction will bring significant benefits to shareholders, customers and employees of both companies," said John M. Barth, chairman and CEO of Johnson Controls. "By joining with York, a market leader with a strong growth outlook, Johnson Controls is staking out a strategic growth potential and synergies with our controls business. Importantly, Johnson Controls will maintain its strong financial position, while substantially diversifying our business mix."

The transaction is anticipated to close in December, subject to regulatory and York shareholder approvals.