Visteon to Acquire Automotive Electronics Business of Johnson Controls for $265 Million in Cash
In a move that will create one of the world’s three largest suppliers of vehicle cockpit electronics, Visteon Corporation (NYSE:VC) has agreed to purchase the automotive electronics business of Johnson Controls (NYSE:JCI) in a cash transaction valued at $265 million.
According the company, the acquisition will “enhance Visteon’s competitive position in the fast-growing vehicle cockpit electronics segment by strengthening its global scale, manufacturing and engineering footprint, product portfolio and customer penetration.”
The combined business will be a $3 billion global electronics enterprise with a No. 2 global position in driver information and above-average growth rates for the segment, supplying nine of the world’s 10 largest vehicle manufacturers.
Visteon President and CEO Timothy D. Leuliette said the transaction reinforces Visteon’s commitment to cockpit electronics as one of Visteon’s two core businesses, along with Halla Visteon Climate Control, the world’s No. 2 automotive climate control supplier.
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 about 1,000 engineers, electronics specialists and designers at seven research and development centers in Europe, North America and Asia. The business has a diversified customer base, with BMW, Honda, Renault-Nissan, PSA Peugeot-Citroen and Ford representing about 72 percent of its annual revenue.
About Visteon
Visteon is a leading global automotive supplier delivering value for vehicle manufacturers and shareholders through businesses including: Halla Visteon, Visteon Electronics and Visteon Interiors. Through its family of businesses, Visteon generated $13.8 billion in sales in 2012, including non-consolidated operations. With corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Chelmsford, UK; Visteon has facilities in 29 countries and employs about 22,000 employees in its consolidated operations. More information at: www.visteon.com.
Category: General Update, Management
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