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Johnson Controls Acquires Thermostat Leader Lux Products

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Johnson Controls International plc (JCI - Free Report) has acquired assets of Philadelphia-based Lux Products Corp. (”LUX”) for an unspecified amount. With the acquisition of LUX, which specializes in residential thermostats and smart home products, Johnson Controls bolsters its position in the thermostat market.

This acquisition enhances Cork, Ireland-based diversified technology company and multi-industrial leader Johnson Controls’ capability to offer superior products to customers, enabling innovation. On the other hand, Rob Munin, CEO of LUX and newly named general manager, Thermostats for Johnson Controls stated, “Together, we will enhance a strong position in the residential channel and look forward to expanding our offerings to serve a wide range of customers.”

Importantly, announcement of this acquisition followed the launch of Johnson Controls’ GLAS, the new smart thermostat, with OLED touchscreen display and several high-tech features. For Johnson Controls, the acquisition of LUX raises its commitment to thermostats market. The recent acquisition also enables faster product development cycles, enhances customer service capabilities and supports greater product innovation.

Over the past six months, shares of Johnson Controls have underperformed the industry it belongs to. Over this time frame, shares of the company have inched up 1.6%, whereas the industry increased 6.3%.



Zacks Rank & Stocks to Consider

Currently, Johnson Controls has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Navistar International Corporation , each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ferrari has an expected long-term growth rate of 17.3%. Over a year, shares of the company soared 20.2%.

Allison Transmission has an expected long-term growth rate of 10%. Over the past year, shares of the company have surged 42.3%.

Navistar has an expected long-term growth rate of 5%. Over the past six months, shares of the company have risen 9.5%.

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