JCI to sell headliner, sun visor business to private equity firm

David Sedgwick
AUTOMOTIVE NEWS

Published: February 19, 2014 10:49 pm ET
Updated: February 19, 2014 10:52 pm ET

Related to this story

Topics Automotive Mergers & Acquisitions
Companies & Associations Johnson Controls Inc.

Johnson Controls Inc. plans to sell its headliner and sun visor business to an affiliate of Atlas Holdings LLC, a private equity firm based in Greenwich, Conn.

Johnson Controls expects to close the deal by April 30, the Glendale, Wis.-based supplier said today. Terms of the agreement were not disclosed.

In a written statement, Johnson Controls said the sale of those two product lines "will improve the overall competitiveness of our interiors business, improve our profitability and enable us to further strengthen and focus on our core interiors business."

Last year, Johnson Controls had announced its desire to sell off its unprofitable interiors unit and also its electronics division. Since then, the company has sold its electronics operations to Gentex Corp. and Visteon Corp.

The sale leaves Johnson Controls with a portion of its interiors unit, which also makes door panels, instrument panels and floor consoles. The unit generates about $4.2 billion in annual revenue.

In a January interview, Beda Bolzenius, president of Johnson Controls' seating operation, identified seats and batteries as the company's core automotive units. Bolzenius said the entire interiors industry was unprofitable -- and that suppliers needed to consolidate.

"Nobody is happy, and nobody is making the necessary return on capital to finance growth," Bolzenius told Automotive News. "Over-capacity is an issue."

A spokesman for Atlas declined to comment on the matter earlier today. Atlas specializes in investing in distressed companies, and then turning them around.

Sean Gagnier contributed to this report.


Comments

JCI to sell headliner, sun visor business to private equity firm

David Sedgwick
AUTOMOTIVE NEWS

Published: February 19, 2014 10:49 pm ET
Updated: February 19, 2014 10:52 pm ET

Post Your Comments


Back to story


More stories

Image

Jaguar Land Rover to begin using MuCell across its product line

April 27, 2015 9:47 am ET

Another automaker has announced plans to use Trexel Inc.'s MuCell molding technology in future production.    More

Image

Haitian builds system for Renault's new China auto assembly plant

April 24, 2015 11:10 am ET

A late-comer to the world's largest auto market, French carmaker Renault SA is currently building its first factory in China.    More

Image

Eriks NV buys two US polymer companies

April 24, 2015 10:38 am ET

Dutch company Eriks NV is expanding its reach in the North American plastics sector with two acquisitions: Dallas-based Seals and Packings Inc. and...    More

Image

Jeco adds Ferry rotational molder to handle increase in business

April 23, 2015 12:27 pm ET

Jeco Plastics Products LLC is ramping up for more work, adding a new Ferry 2600 rotational molder that will provide more capabilities.    More

Image

Engel, VW working on joint research into high volume composites in auto

April 23, 2015 9:40 am ET

Engel, the Austria-based manufacturer of injection molding machines, is building one of its largest machines for a research center looking into integr...    More

Market Reports

North American Thermoformed Packaging Market Outlook & Review 2015

Our annual report provides a thorough review and analysis of economic and political conditions, emerging market trends, packaging design advances, materials pricing and sustainable packaging issues impacting supply and demand in the TP segment. Our analysts identify key drivers of growth and opportunities for processors to remain competitive in the years ahead through innovation, production efficiencies and more.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events