Johnson Controls (JCI.US) will sell its residential and light commercial (R&LC) heating, ventilation, and air conditioning (HVAC) business to Bosch Group for a transaction value of $8.1 billion. Affected by the news, Johnson Controls rose 3.5% before the market opened.

This all-cash transaction includes the North American pipeline business and Johnson Controls' residential joint venture with Hitachi (HTHIY.US), in which Johnson Controls has a 60% stake. Hitachi will retain some HVAC assets located in Shimizu, Japan.

Johnson Controls will receive approximately $6.7 billion, including around $4.6 billion from the North American pipeline business and approximately $2.1 billion from its stake in the joint venture.

This transaction is a key part of Johnson Controls' strategic evaluation of non-core product lines and will make it a pure-play commercial building integrated solutions provider.

The company expects to use a portion of the proceeds from the transaction to pay down debt, with the remaining balance returning to shareholders.

The transaction is expected to be completed within 12 months.

Johnson Controls also expects slightly higher adjusted earnings per share for the third quarter than previously expected. The company will announce its third-quarter results on July 31st.