VAN BUREN TOWNSHIP — Visteon Corporation today announced that it has completed the acquisition of the automotive electronics business of Johnson Controls, creating one of the world’s three largest suppliers of vehicle cockpit electronics. The two companies announced plans for the $265 million cash transaction on Jan. 13.
“This acquisition is a milestone in Visteon’s transformation, which we are confident will greatly benefit our customers, investors and new and existing employees around the world,” said Timothy D. Leuliette, Visteon CEO and president. “As a cornerstone of our value creation plan, this transaction solidifies cockpit electronics as one of Visteon’s two high-growth core growth businesses – along with vehicle thermal management systems, in which we hold the No. 2 position globally.”
Leuliette says 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 global electronics enterprise has more than $3 billion in annual revenue, with a No. 2 global position in driver information and above-average growth rates for the cockpit electronics segment, supplying nine of the world’s 10 largest vehicle manufacturers.
The business acquired from Johnson Controls provides automakers with driver information, infotainment, connectivity and body electronics products. The transaction involves about 5,000 employees, including approximately 1,000 engineers, electronics specialists and designers in Europe, Asia, and North America. Visteon’s new electronics business has 24 manufacturing locations, eight global technical centers and about 10,500 employees worldwide.
In the fiscal year ended Sept. 30, 2013, the business acquired by Visteon generated approximately $1.3 billion in revenue and about $58 million in EBITDA (earnings before interest, taxes, depreciation and amortization). This includes a deduction of approximately $12 million for corporate allocations that will not transfer with the transaction. The transaction offers opportunities for long-term margin expansion through economies of scale, with estimated annual cost synergies reaching more than $40 million by 2017.