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

Plastic Omnium makes China investment push

February 26, 2015 4:35 pm ET

Three of the six new plants that automotive molder Plastic Omnium SA plans this year will be in China, part of a broader push it’s making in...    More

Image

Ferro acquires TherMark Holdings for $5.5 million

February 26, 2015 12:15 pm ET

Ferro Corp. said it acquired privately held TherMark Holdings Inc., a laser marking technology company, for $5.5 million in cash.    More

Image

Serbia puts Krušik-Plastika up for sale

February 26, 2015 11:39 am ET

The Serbian Privatization Agency has launched the privatization process for local plastics maker Krušik-Plastika. The agency says it is...    More

Image

3i to sell specialty chemicals company Azelis to Apax Partners

February 26, 2015 11:36 am ET

Azelis Holding SA, the specialty chemicals distributor, is being sold by its private equity owners 3i Group plc to another private investment outfit, ...    More

Image

Amut buys Dolci and Bielloni

February 25, 2015 3:41 pm ET

Amut SpA, the Novara, Italy-based maker of extruders, thermoforming machines and plastics recycling equipment, has acquired the Italian company that m...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

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 in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

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

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events