JCI to sell battery business soon

Move would complete company’s exit from autos

Johnson Controls International plc is close to a deal to sell its automotive battery business to a private equity firm, according to a news story from Bloomberg.

The sale to Brookfield Asset Management could be announced as soon as this week, though a final agreement has not been reached, Bloomberg reported. Brookfield Asset Management, a Canadian firm, has $285 billion under management and invests in real estate, infrastructure, renewable power and private equity.

In March, Johnson Controls said it was exploring the sale or spin-off of its Power Solutions business.

Johnson Controls is the world’s largest manufacturer of automotive batteries.

The battery business employs about 15,000 people, including about 500 in Glendale.

It generated $7.3 billion in revenue and $1.6 billion in earnings before interest, taxes, depreciation and amortization in the fiscal year ended Sept. 30, 2017.

The company had total revenue of $30.2 billion in its 2017 fiscal year.

The company produces about 154 million batteries a year, and its batteries are in roughly one out of every three automobiles on the road today.

The sale would complete Johnson Controls’ exit from the automotive business.

Johnson Controls spun off its automotive seating business, now known as Adient plc, in October 2016, shortly after the merger of Johnson Controls and Tyco International.

Adient’s businesses include Johnson Controls’ former automotive interiors business, which now is part of a joint venture with Yanfeng Automotive Trim Systems.

In March, when Johnson Controls announced the possible sale or spin-off of the battery business, George Oliver, chairman and chief executive officer, said the company’s strategic priority was to strengthen and invest in its core business of heating, cooling, fire protection and security products and services.

Johnson Controls, based in Cork, Ireland, has its main offices in Milwaukee.