Glendale-based global diversified industrial company Johnson Controls Inc. has announced it is reviewing strategic options for its automotive business. Those options include a joint venture, a sale or a spinoff.
The company is specifically reviewing two portions of the Automotive Experience segment: the $17.5 billion seating division and the $4.5 billion interiors joint venture with Chinese firm Yanfeng Automotive Trim Systems Co. Ltd. Automotive Experience also makes automobile electronics.
The company doesn’t have a schedule for completion of the evaluation for the segment. Johnson Controls continues to evaluate growth platforms that fit with the operational capabilities and specific attributes of its portfolio.
“Today’s announcement continues our strategy of proactive portfolio management to drive focus on strategic product-oriented businesses where we can be a global market leader, drive more profitable growth and deliver maximum long-term value for our customers and shareholders,” said Alex Molinaroli, chairman and chief executive officer of Johnson Controls. “I am very pleased that we are consistently delivering on our operating commitments while also building a strong foundation for growth by leveraging our Johnson Controls Operating System across the company.”
Johnson Controls in April sold its Global WorkPlace Solutions division, which managed real estate and corporate facilities, to CBRE Group for $1.5 billion.
Goldman Sachs and Centerview Partners will serve as financial advisors to Johnson Controls. Wachtell, Lipton, Rosen and Katz will serve as legal advisor in the segment review.
Johnson Controls has 170,000 employees serving customers in more than 150 countries. It makes products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles.