By Ben Fox Rubin
Johnson Controls Inc. (JCI) agreed to sell its automotive
electronics unit to automotive supplier Visteon Corp. (VC) for $265
million, as Johnson Control refocuses its business.
Johnson, a large diversified manufacturer, previously said it
wanted to move away from automotive electronics as part of a
broader push to focus on core businesses and reallocate funds.
The maker of car batteries, automotive seating, and York-brand
heating and air conditioning systems last year completed the sale
of its HomeLink assets--which include a vehicle-based control
system to remotely activate garage door openers and home
lighting--for $700 million to Gentex Corp. (GNTX).
Visteon will acquire Johnson Controls' instrument cluster,
infotainment, display and body electronics products. Visteon said
the deal will improve its competitive position in vehicle cockpit
electronics by broadening its manufacturing and engineering
footprint, product portfolio and customer penetration.
The acquisition is expected to close in the second quarter.
Johnson Controls shares closed Friday at $51.59, while Visteon's
closed at $85.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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