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JCI May Have Hit Snag in Electronics Unit Sale
Johnson Controls Inc. has broadened its search for a buyer for its automotive electronics business because of weak bidding interest, according to news reports.
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Johnson Controls Inc. has broadened its search for a buyer for its automotive electronics business because of weak bidding interest, according to news reports. They add that JCI might even break up the unit and sell the pieces.
The company insists it has received "strong interest from multiple strategic buyers."
JCI reportedly excluded private equity firms from the bidding when it put the electronics operations up for sale in March. Unidentified sources tell Reuters that the company has opened talks with such firms after some industry bidders were disappointed by the unit's performance.
JCI's electronics profit tumbled 35% to $24 million in the January-March period as revenue dropped 13%. The company blames Europe's sluggish auto market.
JCI is now weighing the possibility selling the unit's assets piecemeal, according to Bloomberg News. The news service cites anonymous sources who say that at least one of the bidders, Delphi Automotive plc, wants only portions of the operations,
Visteon Corp. and Shanghai Automotive Industry Corp's Huayu Automotive Systems also are still interested, according to the news services.
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