Johnson Controls announced today that it is exploring strategic options for the separation of its automotive business.
"Today's announcement continues our strategy of proactive portfolio management to drive focus on strategic product-oriented businesses where we can be a global market leader, drive more profitable growth and deliver maximum long-term value for our customers and shareholders," said Alex Molinaroli, chairman and chief executive officer, Johnson Controls. "I am very pleased that we are consistently delivering on our operating commitments while also building a strong foundation for growth by leveraging our Johnson Controls Operating System (JCOS) across the company."
The JCOS reflects "the Johnson Controls way" and provides an operational vehicle to create value through systemic application of strategic capabilities across the company. As discussed at the company's analyst meeting in December 2014, the JCOS is already delivering results and is expected to yield $2 billion in incremental segment income by 2020 through operational effectiveness and increased speed to market.
Johnson Controls said it had no specific timetable for the completion of the strategic review, which includes a full range of strategic options for the automotive business. The company is also continuing to actively evaluate growth platforms that are aligned with the unique operational capabilities and specific attributes of its multi-industrial portfolio.
Last year the company sold part of its automotive business to Visteon Corporation, which announced July 1, 2014, that it completed the acquisition of the automotive electronics business of Johnson Controls, creating one of the world's three largest suppliers of vehicle cockpit electronics. The two companies announced plans for the $265 million cash transaction on Jan. 13, 2014.
Johnson Controls has engaged Goldman Sachs and Centerview Partners to serve as financial advisors, and Wachtell, Lipton, Rosen and Katz to serve as legal advisor in connection with this strategic review.
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. The company has 170,000 employees who create products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles.
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