Van Buren Township-based Visteon Corp. announced today that it will purchase the automotive electronics business of Johnson Controls for $265 million. In doing so, the company will become one of the world’s top three suppliers of automotive cockpit electronics with combined annual sales of $3 billion.
“This is a strong strategic fit with our existing electronics portfolio and gives us the worldwide scale and cost efficiencies needed to support vehicle manufacturers’ global platforms and programs,” says Timothy D. Leuliette, president and CEO of Visteon. “It also diversifies our electronics customer base, solidifies our already strong global footprint, and brings new technologies, capabilities, and outstanding engineers to help grow our business.”
The business to be acquired from Milwaukee-based Johnson Controls provides automakers with driver information, infotainment, connectivity, and body electronics products and has a diversified customer base, with BMW, Honda, Renault-Nissan, PSA Peugeot-Citroen, and Ford representing about 72 percent of its annual revenue.
The transaction, which involves about 4,800 employees, will enhance Visteon’s competitive position in the fast-growing vehicle cockpit electronics segment, company officials say.
“The combined business will result in market and technology leadership in major cockpit electronics technologies, as well as opportunity for entry and fast growth into new product lines,” says Martin Thall, president of Visteon Electronics. “The size and scale of our integrated research, development, and engineering will solidify Visteon as the ‘go to’ global innovation partner for automakers who require rapid development cycles and fast time-to-market.”
The deal is expected to close in the second quarter of 2014.