Johnson Controls Inc is exploring a sale of its automotive electronics business, the US-based maker of auto ancillaries and batteries said yesterday.
Responding to media reports, the Milwaukee-based company said that it has hired JPMorgan to explore the potential sale of its automotive electronics business segment and not its automotive interiors business segment, which it said it had no current intention of divesting.
Johnson Controls' automotive electronics had 2012 sales of $1.4 billion, and may fetch more than $1 billion, according to several media reports.
Johnson Controls is planning to hive off its automotive electronics business in order to generate cash and focus on its other four profitable divisions, automotive seating, automotive interiors, building controls and car batteries.
The electronics unit makes driver information solutions that include instrument clusters, displays, compass systems, clocks, park-distance warning displays, a patented HomeLink button that automatically opens entrance gates as the car approaches, garage doors and lights up the garden and the house.
It also makes infotainment and connectivity systems that provide an interface to integrate its Mobile Device Gateway with Bluetooth, USB and serial interfaces, as well as anti-theft systems, tyre pressure monitoring systems, access controls systems and interior control modules for seat and roof.
Johnson Controls is the largest US auto supplier with annual revenues of $41.9 billion.