VAN BUREN TOWNSHIP, Michigan,
July 1, 2014 /PRNewswire/ -- Visteon
Corporation (NYSE: VC) today announced that it has completed the
acquisition of the automotive electronics business of Johnson
Controls (NYSE: JCI), 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.
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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.
"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 added: "Acquiring this highly regarded electronics
business gives us the worldwide scale and cost efficiency to
support new global programs from automakers, and elevates Visteon
into the top tier of companies accelerating connected car
technology. The influx of technology and talent will bolster our
already strong innovation capabilities. I am pleased with the
efforts of both companies to ensure a smooth transition for our
customers, suppliers and the employees involved."
Martin T. Thall, Visteon
executive vice president and president, Electronics, said the
acquisition marks the creation of a "major player in the automotive
electronics industry."
"This new electronics enterprise has the market position and
innovation to become the leading technology company in the
automotive sector," Thall said. "We are developing solutions that
combine the best technology from the fast-paced consumer
electronics industry and the automotive world. We're excited to
strengthen our ability to be the automotive partner of choice – the
connecting point for our customer's mobility strategies."
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 EBITDA 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.
Advising Visteon on the transaction were Rothschild Inc. and
Skadden, Arps, Slate, Meagher & Flom LLP.
About Visteon
Visteon is a global automotive supplier
delivering value for vehicle manufacturers and shareholders through
two high-growth core businesses: automotive cockpit electronics and
thermal management. Visteon owns 70 percent of Halla Visteon
Climate Control Corp., the world's second largest provider of
vehicle thermal management solutions. Visteon designs, engineers
and manufactures innovative components and systems for virtually
every vehicle manufacturer worldwide. With corporate offices in
Van Buren Township, Mich. (U.S.);
Shanghai, China; and Chelmsford, UK; Visteon has facilities in 32
countries and employs about 29,000 people. Visteon had sales of
$7.4 billion in 2013. Learn more at
www.visteon.com.
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