Updated June 10, 2015 9:16 a.m. ET
said Wednesday that it is considering a sale of its automotive business, the latest potential divestiture for the industrial company seeking to refocus on higher-margin nonautomotive businesses.
Chief Executive Alex Molinaroli said the announcement continues the company’s strategy of focusing on “strategic product-oriented businesses where we can be a global market leader.”
The Milwaukee-based company has hired Goldman Sachs and Centerview Partners as advisers and said that it has no specific timetable for the completion of the strategic review.
Johnson Control’s automotive experience business is one of three operating segments. Through the unit, the company designs and manufactures products like door panels and seats for passenger cars and light trucks.
That business is comprised of two units: seating and interiors. Last year, Johnson Controls agreed to spin off its auto-interiors business after previously divesting its automotive-electronics business.
That leaves its seating business, the larger of the two, which is what Johnson Controls may next separate. The company is the world’s largest seat maker and the segment brought in $17.5 billion in sales last year, up 8% from the previous year. The business accounted for $880 million in profit last year, nearly two-thirds of the bottom line.
In March, the company sold its workplace solutions segment to CBRE Group Inc.
for $1.48 billion.
Shares in the company, up about 7% this year through Tuesday’s close, jumped 4.5% premarket.
Write to Lisa Beilfuss at firstname.lastname@example.org
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