Johnson Controls says the sale of its automotive electronics business to Visteon for US$265m, will enable it to reinvest the money in core operations.
Visteon maintains the combined business will be a US$3bn global electronics enterprise with a claimed number two global position in driver information and above-average growth rates for the segment, supplying nine of the world’s 10 largest vehicle manufacturers.
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“Our goal is to take the proceeds and to reinvest in the core business,” Johnson Controls power solutions president, Brian Kesseler, told just-auto at last week’s North American International Auto Show in Detroit. “We have our interior business still. We talk about reviewing strategic alternatives – that does not mean we are selling it.”
“We are not looking to exit our automotive space. We will always evaluate all our product lines and make sure we are optimising…for shareholders.
“We don’t really compete with Visteon on a lot of product line. As we continue to reposition ourselves as a multi-industrial player, historically we have had a very high bias to the automotive sector.”
The business to be acquired from Johnson Controls provides automakers with driver information, infotainment, connectivity and body electronics products.
The transaction involves about 4,800 employees, including around 1,000 engineers, electronics specialists and designers at seven research and development centres in Europe, North America and Asia.
“Our power solutions business continues to grow,” said Kesseler. “It is probably the most dynamic it has been ever.”
