JCI board approves seating and interiors spin-off
JCI's seating subsidiary spin-off has the green light
Johnson Controls says its board of directors has approved the previously announced spin-off of its global automotive seating and interiors business.
The transaction will result in two independent, publicly traded companies: Johnson Controls International and Adient. The spin-off is expected to be completed on 31 October this year.
A statement from Johnson Controls maintains at the time of the separation, Adient will be the world's largest global automotive seating supplier, supporting all major automakers.
Johnson Controls will operate as a technology, integrated solutions and energy storage company.
"Today's announcement is an important step as Adient continues on its path toward becoming an independent company," said incoming Adient chairman and CEO, R. Bruce McDonald.
"As the market leader in the automotive seating industry, Adient is well-positioned for growth and margin expansion as we commit to reinvesting in the business on a global basis."
The separation will occur by means of the declaration of a dividend in specie of the automotive seating and interiors business, to be effected by the transfer of the automotive seating and interiors business from Johnson Controls to Adient and the issuance of ordinary shares of Adient directly to holders of Johnson Controls ordinary shares on a pro rata basis.