Johnson Controls looks to separate automotive business

Freeman Staff

June 10, 2015

MILWAUKEE — Johnson Controls announced early Wednesday that it is looking into different options to separate its automotive business, but has not set a timeframe for the decision.

“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 of Johnson Controls, in a statement. “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 provides an operational vehicle to create value through systemic application of strategic capabilities across the company. The JCOS is expected to yield $2 billion in incremental segment income by 2020 through operational effectiveness and increased speed to market, according to Johnson Controls.
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.