Johnson Controls to sell auto battery business
The purchasing group in the US$13.2 billion sale includes the Caisse de depot et placement du Quebec.
November 17, 2018 by Canadian Plastics
Johnson Controls International PLC is selling its automotive-battery business to a group led by Brookfield Business Partners LP for US$13.2 billion in cash.
In addition to Brookfield, the purchasing group includes the Caisse de depot et placement du Quebec (CDPQ), together with a group of institutional partners. CDPQ is a long-term institutional investor with more than $270 billion of net assets.
The business produces batteries for automakers and aftermarket distributors and retailers. Battery cases and covers from Johnson Controls are injection molded.
In a statement, Johnson Controls said the deal will allow it to focus on its building technologies and solutions unit, which manufactures heating, ventilation and air conditioning systems as well as building management, security and fire safety systems.
“The sale of our power solutions business will create value for investors by streamlining our portfolio and giving us increased financial flexibility to strengthen our balance sheet, return capital to shareholders and create optionality in our buildings business,” Johnson Controls chairman and CEO George Oliver said in a statement.
Johnson Controls, which has global headquarters in Glendale, Wis., produces lithium-ion and lead-acid batteries for automakers and aftermarket distributors.
The deal is expected to close by June 30, 2019.