Johnson Controls, (NYSE: JCI), a global multi-industrial company with established core businesses in the buildings, automotive and energy storage industries, today announced that it has signed a definitive agreement to sell its automotive electronics business to Visteon Corporation (NYSE: VC) for $265 million. Under the terms of the agreement, Visteon will acquire Johnson Controls' instrument cluster, infotainment, display, and body electronics products. The company previously sold the HomeLink® product portion of its electronics portfolio to Gentex Corporation in September 2013.
"We are pleased with this agreement. Visteon is a good strategic fit for the business and will provide the right level of commitment and the best long term value for our customers and employees," said Alex Molinaroli, chairman and CEO of Johnson Controls.
This transaction will complete Johnson Controls' divestiture of the automotive electronics business which in aggregate realized total proceeds in line with original expectations of over $965 million. As previously communicated, the company elected to move away from automotive electronics as part of its broader strategy to focus on core businesses and reallocate capital to further diversify its portfolio and maximize shareholder value.
The acquisition is subject to certain regulatory and other consents and approvals and is expected to be completed in the second quarter of the 2014 calendar year. Other terms of the agreement were not disclosed.