Johnson Controls says CEO to retire, names new director after talks with Elliott

(Reuters) -Johnson Controls said on Wednesday that CEO George Oliver will retire and the building solutions provider appointed Patrick Decker as a director to its board following talks with activist investor Elliott Investment.

Shares of Johnson Controls were up 8% in early trading.

Elliott has built a more than $1 billion stake in Johnson Controls.

The move comes amid company's efforts to streamline its business, which included divestiture of its portfolio of heating, ventilation, and air conditioning (HVAC) assets.

"Actions announced today along with the recent portfolio changes position the company to realize the benefits of its transformation, enhance operational performance and drive significant shareholder value creation," said Marc Steinberg, partner at Elliott.

Johnson Controls is also considering the sale of its ADT alarms business unit, which has already attracted interest from private equity funds, Reuters reported in May.

Founded in 1885, Johnson Controls makes a wide range of appliances and equipment for commercial buildings, as well as home comfort appliances. It provides electronic systems for offices, schools and hospitals in areas such as ventilation, security and fire detection.

Separately, the company reported an adjusted profit of $1.14 per share for the third quarter on Wednesday, beating estimates of $1.08, according to LSEG data.

(Reporting by Pratyush Thakur in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)