Johnson Controls (JCI), which specialises in automotive seating systems, interior components and electronics, has signed a share purchase agreement for the acquisition of Michel Thierry.
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The acquisition, based in Laroque d’Olmes, France, supplies fabrics and lamination to the automotive industry, with strong R&D and manufacturing capabilities in Europe – primarily in France, Spain and the Czech Republic – and operations worldwide, JCI said in a statement.
“The combination of Johnson Controls Automotive Experience and Michel Thierry is a perfect fit. I am convinced that together we create a unique value proposition for our customers and differentiation in the industry,” said JCI auto interiors unit chief Beda Bolzenius.
JCI added that the strategic acquisition of the renowned French automotive supplier would position the company as one of the global leaders in textiles and in integrated trim, thus creating opportunities for future business growth. According to the company, Johnson Controls’ expertise in cut and sew and Michel Thierry’s expertise in fabrics meet customers’ increasing demand for integrated services – from fabrics to complete seats – on a global scale.
The company also anticipates enhanced innovation opportunities and the potential for further quality optimisation “by covering the entire process chain with early customer involvement”.
The acquisition also puts JCI in a position to make better use of growth potential in Chinese and North American markets, it added.
Michel Thierry CEO Frédéric Chaussat said: “This operation marks a very significant step in Michel Thierry’s history. With the support of its current shareholders, HTP, a privately-held Dutch investment company, and the French automotive fund FMEA, Michel Thierry has continued to strengthen its leading market position in a difficult industry context and will be well-armed to grow further.”
Michel Thierry’s product line includes automotive textiles for seating and for interiors and leather production for seating and interiors. Capabilities include design, development, production, weaving, knitting, lamination, embossing, screen printing, welding and laser punching. There are 1,700 employees.
Completion of the deal is expected by the end of November 2010.
