The Johnson Controls plc board of directors has approved the previously announced spin-off its global automotive seating and interiors business, the company announced Thursday.
The now Ireland-based company announced in 2015 it would spin the business off into its own publicly traded company. The new company, Adient plc, will also be based in Ireland but will have operational headquarters in a number of locations, including Milwaukee.
Adient has been operating independently within Johnson Controls since the summer and the spin-off is set to take place prior to the opening of business on Oct. 31.
Johnson Controls, which operates out of facilities in Glendale, said the separation will occur through a declaration of a dividend in the form of the automotive and seating business to Adient plc and the issuance of Adient shares to Johnson Controls shareholders.
Those with Johnson Controls shares will receive one Adient share for every 10 Johnson Controls they own. Cash payments will be made in lieu of fractional shares.
“Today’s announcement is an important step as Adient continues on its path toward becoming an independent company,” said Bruce McDonald, incoming Adient chairman and chief executive officer. “As the market leader in the automotive seating industry, Adient is well-positioned for growth and margin expansion as we commit to reinvesting in the business on a global basis.”
Adient is expected to begin trading Oct. 31 on the New York Stock Exchange under the symbol ADNT.