Automotive supplier Visteon Corp. has agreed to purchase the automotive electronics business of Johnson Controls Inc. for US$265 million in cash.
The acquisition is expected to close in the second quarter of 2014.
The deal includes instrument cluster, infotainment, display and body electronics products
The electronics business being acquired by Detroit-based Visteon generated US$1.3 billion in revenue in the 2013 fiscal year, the company said in a statement. Visteon estimates that its new, enlarged electronics unit will have around US$3 billion in sales annually.
"This is a strong strategic fit with our existing electronics portfolio and gives us the worldwide scale and cost efficiencies needed to support vehicle manufacturers’ global platforms and programs,” said Visteon president and CEO Timothy D. Leuliette. “It also diversifies our electronics customer base, solidifies our already strong global footprint, and brings new technologies, capabilities and outstanding engineers to help grow our business."
Headquartered in Glendale, Wis., Johnson Controls’ electronics business employs 4,800 people at seven R&D centres in North America, Europe, and Asia.