Johnson Controls to Acquire Global Vehicle Interior Supplier
28 April 1998
Johnson Controls Announces Agreement to Acquire Global Vehicle Interior Supplier Becker Group
Premier Supplier of Vehicle Interior Systems Strengthens Design and
Manufacturing Capabilities in Europe and North America
MILWAUKEE, April 27 -- Johnson Controls, Inc.
announced today that it will acquire automotive interior supplier Becker
Group, of the United States, and its Becker Group Europe. The acquisition
establishes Johnson Controls as the leading supplier of interior systems in
Europe and strengthens the company's North American capabilities for complete
interiors.
Becker Group is a privately held firm based in Sterling Heights, Mich.,
and Wuppertal, Germany. Its 1998 sales are expected to be approximately
US$1.3 billion, of which 70 percent is in Europe. Becker Group is a major
supplier of interior systems, particularly door systems and instrument panels.
It also provides systems integration services to its largest customers,
Daimler-Benz and Chrysler. Other major customers of the company are Audi, BMW,
Ford, General Motors/Opel, Mitsubishi, Renault, Rover, Toyota, Volkswagen and
Volvo.
In addition to door systems and instrument panels, Becker Group's product
line includes modular headliners, floor consoles, sun visors and other
interior trim components.
Johnson Controls said the company anticipates paying between
US$550-600 million for Becker Group, plus the assumption of the company's
debt. The transaction is expected to be completed this summer, following
regulatory approvals.
James H. Keyes, chairman and chief executive officer of Johnson Controls,
said, "The acquisition is a major part of our strategy to become the global
leader in automotive interior systems, in addition to our current strength in
seating systems. Becker Group, including its Europe-based Happich Fibrit
subsidiary, provides Johnson Controls with a strong engineering and
manufacturing organization to increase the level of service and capabilities
we can offer to European-based vehicle manufacturers."
John M. Barth, executive vice president for Johnson Controls, added that
Becker Group also expands Johnson Controls' North American complete interiors
integration and engineering resources as well as its domestic manufacturing
base.
Johnson Controls, the world's largest supplier of complete seat systems,
entered the interior systems market in the 1990s through a combination of
resource development inside the company and acquisitions. The acquisition of
France-based Roth Freres added to its overhead systems capabilities in Europe,
and the acquisition of U.S.-based Prince Corporation provided Johnson Controls
with expertise in several interiors systems, including electronics.
Mr. Barth stated that "Johnson Controls and Becker Group have long
histories of customer satisfaction and product innovation. Through this
agreement, we now have interior systems resources in Europe and North America
that are unmatched, including outstanding engineering, a solid manufacturing
base and product technology that adds value for our customers and delights
vehicle buyers."
Charles Becker, chairman and chief executive officer of Becker Group,
said, "The alliance between Johnson Controls and Becker Group creates a
unified business entity with outstanding global capabilities. It is a
qualified partner for automakers worldwide that can design, engineer and
manufacture all major vehicle interior products, including door panel,
instrument panel, overhead and complete seat systems."
Becker Group has 8,400 employees and operates 51 facilities worldwide. The
company has 32 manufacturing plants, including sites in the Czech Republic,
France, Germany, Hungary, Mexico, Spain, Sweden, the United Kingdom and the
United States. In 1996, Becker Group acquired Happich Fibrit GmbH of Germany,
a leading supplier of vehicle interior systems in Europe.
Johnson Controls, Inc., with headquarters in Milwaukee, Wis., USA, is a
global market leader in automotive systems and building controls. Founded in
1885, Johnson Controls had sales of US$11.1 billion in 1997 and operates in
more than 500 locations around the world. See http://www.johnsoncontrols.com
for more information.
The company has made forward-looking statements in this document that are
subject to risks and uncertainties. Forward-looking statements include
information concerning possible or assumed future risks and may include words
such as "believes," "expects," "anticipates" or similar expressions. For those
statements, the company cautions that the numerous important factors discussed
in the company's Form 8-K (dated October 30, 1997) could affect the company's
actual results and could cause its actual consolidated results to differ
materially from those expressed in any forward-looking statement made by, or
on behalf of, the company.
SOURCE Johnson Controls