Johnson Controls has signed a purchase agreement to acquire Keiper and the automotive sport and specialty seat business of Recaro in a move that strengthens its position in automotive seating.
Keiper is a specialist in recliner system technology as well as possessing engineering and manufacturing expertise in metal components and mechanisms.
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Keiper’s headquarters and engineering center are located in Kaiserslautern, Germany. The acquisition will include approximately 4,750 employees globally in seven countries. Excluded from the transaction are Keiper’s operations, business and entity in Brazil.
“This acquisition further strengthens our metal components and mechanisms business through the addition of the Keiper and Recaro brands which are synonymous with quality, technical expertise and innovation,” said Beda Bolzenius, Vice President, Johnson Controls and President, Automotive Experience. “It provides leading technologies that we can leverage across our current seat component portfolio, and expand in China and North America.”
Keiper’s expertise includes the complete engineering process and technologies used to produce metal seat components, structures and mechanisms. The product range encompasses mechanisms which adjust the seat’s length and height, recliners that adjust the backrest position of vehicle seats, and rear seat latches. This acquisition also includes the Recaro automotive sport and specialty seat portfolio.
With the acquisition of Keiper and the automotive seating division of Recaro, Johnson Controls expects to strengthen its competitive position in key seating components with expanded opportunities to develop new differentiating products and technologies. Johnson Controls said that it believes that increasing vertical integration and enhancing its seating components technologies will help accelerate future growth of its automotive seating business.
Martin Putsch, owner and CEO of the Keiper Recaro Group said: “We are pleased that our team will become part of such a successful organization. Being part of Johnson Controls will provide a unique opportunity for our company to best meet the future challenges of our industry, such as fast-growing globalization and platform standardization.”
Completion of the acquisition, which is subject to the anti-trust approval, is expected during the first half of calendar year 2011. Financial details regarding the transaction were not disclosed.
