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Visteon Buys JCI Auto Electronics Unit
Visteon Corp. will spend about $265 million to acquire the in-car electronics business of Johnson Controls Inc.
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Visteon Corp. will spend about $265 million to acquire the in-car electronics business of Johnson Controls Inc. The all-cash deal is expected to be completed in the second quarter.
Visteon says the agreement will make it one of the world's three largest supplier of cockpit electronics, with annual global sales in that sector of about $3 billion.
The JCI unit makes driver information, body electronics, connectivity and infotainment systems. The business employs about 1,000 engineers and 3,800 other workers. It also operates seven product design and development facilities in North America, Europe and Asia.
The JCI unit generated about $1.3 billion in revenue mostly to BMW, Ford, Honda, PSA and Renault-Nissan in the fiscal year ended Sept. 30. Earnings before taxes, interest and depreciation for the period was about $58 million.
Visteon estimates that integrating the business with its existing operations will deliver annual cost savings of at least $40 million by 2017.
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