By Lisa Beilfuss
Johnson Controls 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 lisa.beilfuss@wsj.com
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