Johnson Controls seeks to acquire Visteon Corp.; Quad/Graphics gains Canadian approval for acquisition
Johnson Controls seeks to acquire Visteon Corp.
Glendale-based Johnson Controls Inc. is offering to acquire Visteon Corp. for $1.25 billion in cash.
Johnson Controls sent a letter to Visteon, expressing its interest in the acquisition, subject to due diligence, the execution of a definitive agreement and the approval of its board of directors.
Visteon is based in Van Buren Township, Mich.
"We believe that Visteon’s interiors and electronics businesses would be an excellent strategic fit with our Automotive Experience business," said Stephen Roell, chairman and chief executive officer of Johnson Controls. "This acquisition would significantly expand our automotive interior technologies and capabilities. It would provide global scale and complementary products to our automotive electronics offerings. Importantly, it would broaden and deepen our global automotive customer relationships."
Visteon interiors and electronics businesses are leaders in the fast-growing Chinese automotive interiors industry.
In China, both Visteon and Johnson Controls do business primarily through non-consolidated joint ventures. With the addition of Visteon’s operations, Johnson Controls Automotive Experience consolidated and non-consolidated revenues in China could exceed an estimated $7 billion in 2011.
Visteon’s major customers and Chinese joint venture partner support the transaction, according to Johnson Controls.
Johnson Controls initially contacted Visteon regarding its interest in the interiors and electronics businesses in January 2010.
Quad/Graphics gains Canadian approval for acquisition
Sussex-based Quad/Graphics Inc. has received approval from Canadian regulators to acquire World Color Press Inc. of Montreal, Quebec.
The approval was granted under the Investment Canada Act for the previously announced acquisition.
The transaction remains subject to additional customary closing conditions. If all necessary approvals are obtained, the companies expect the acquisition to be completed early this summer.
The acquisition will enhance Quad/Graphics’ position as a commercial printing leader in North America serving the magazine, catalog, retail insert, book, directory and direct mail product segments and enhance Quad/Graphics’ standing as one of the leading commercial printers in the world.
The expanded Quad/Graphics will have nearly 30,000 employees serving customers in the United States, Canada, Latin America and Europe. World Color Press and Quad/Graphics had aggregate unaudited revenues for the 12-month period ended Sept. 30, 2009, of $5.1 billion.