Johnson Controls To Sell Automotive Electronics Business To Visteon

(RTTNews) - Johnson Controls (JCI) announced it has signed a definitive agreement to sell its automotive electronics business to Visteon Corp. (VC) for $265 million. Visteon will acquire Johnson Controls' instrument cluster, infotainment, display, and body electronics products.

Johnson Controls said the transaction will complete its divestiture of the automotive electronics business which in aggregate realized total proceeds in line with original expectations of over $965 million.

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.

Visteon said the acquisition will enhance its competitive position in the vehicle cockpit electronics segment by strengthening global scale, manufacturing and engineering footprint, product portfolio and customer penetration.

In the fiscal year ended Sept. 30, 2013, the business to be acquired by Visteon generated approximately $1.3 billion in revenue and about $58 million in EBITDA.