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 Mergers & Acquisitions, Automotive
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

MGS buying N.Y. medical molding plant from Hospira

April 17, 2014 10:19 pm ET

MGS Manufacturing Group is purchasing the Buffalo, N.Y., injection molding facility and related product line of Hospira Inc., effective July 1. Terms ...    More

Image

Navigating the rough seas of selling your company

April 17, 2014 2:47 pm ET

For family owned plastics firms who survived the Great Recession, many wonder: Is it time to sell, retire and sip cocktails on the beach? Or, maybe...    More

Image

German auto supplier Dr. Schneider opens second US plant

April 17, 2014 12:57 pm ET

Dr. Schneider Kunststoffwerke GmbH, a German supplier of plastic interior auto parts, has opened a $29 million manufacturing plant in Russell Springs,...    More

Spain's Cristian Lay Group buys two materials units of bankrupt LSB

April 17, 2014 11:11 am ET

Spanish industrial conglomerate Cristian Lay Group has purchased two of the bankrupt Spanish PET packaging group La Seda de Barcelona.    More

Negri Bossi's new owners may 'bring significant manufacturing' to US

April 16, 2014 1:09 pm ET

Italian plastics equipment major Negri Bossi may “bring significant manufacturing of injection molding machines back to the United States”...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events