Johnson Controls considers break up of electronics division

Johnson Controls Inc, the largest US auto-parts maker, may break up its electronics division and sell it in pieces if it does not get attractive bids, Bloomberg today reported, citing people with knowledge of the matter.

The Milwaukee-based company may sell only parts of the business if it does not get the right price for the entire unit, said the report and added that at least one potential bidder, Delphi Automotive Plc, may not want the entire business.

China's SAIC Motor Corp and Delphi are each considering placing bids for at least part of the automotive-electronics unit.

In March, Johnson Controls had 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 $1.2 billion, according to analysts.

The company is hiving 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.

Its 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.