Glendale-based Johnson Controls Inc. has agreed to sell its automotive electronics business to Visteon Corp. for $265 million.
Van Buren Township, Mich.-based Visteon rejected the global multi-industrial firm’s unsolicited offer to acquire key assets of its interiors and electronics business in 2010. The automotive supplier designs and manufactures components and systems for major vehicle manufacturers worldwide.
Visteon will take ownership of Johnson Controls’ instrument cluster, infotainment, display and body electronics products.
This completes Johnson Controls’ divestiture of its automotive electronics business. It sold the HomeLink product line to Gentex Corp. in September. Total proceeds of the transactions are more than $965 million.
The sales will allow the company to focus on its core businesses in buildings, automotive and energy storage and reallocate capital to diversifying its portfolio and driving shareholder value.
“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 chief executive officer of Johnson Controls.
The sale is expected to be complete in the second quarter.
