JCI to Sell Auto Electronics Arm through Private Equity
Johnson Controls Inc. (JCI) is talking to private equity companies about selling its automotive electronics unit. The proposed sale is priced at US$1 billion. This was after buyout interest from many rival auto parts supplier failed according to some sources that are familiar with the matter.
According to same sources, the unit's displayed weaker performance in the industry that disappointed some interested parties. This prompted JCI to reach out to a wider group of buyers. They added that during the earlier part of the auction, private equity firms were not included.
Interested bidders in the industry include Visteon Corp. and Huayu Automotive Systems Co, a parts manufacturer that is majority owned by SAIC Motor Corp said sources.
On Monday, sources said that Delphi Automotive is no longer pursuing the deal. The company was a part of the bidding process.
Spokespersons for Delphu, SAIC and Huayu declined requests to comment regarding reports. Visteon refused to give statements.
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