Johnson Controls Announces Sale of Some Operations to Becker Ventures
1 February 1999
Johnson Controls Announces Agreement to Sell Some Component and Tooling Operations to Becker Ventures
Eight former Becker Group plants in United States
are reacquired by former owner's business group
MILWAUKEE, Jan. 29 -- Officials at automotive interior
supplier Johnson Controls, Inc. today announced that the company
has sold a number of U.S. facilities formerly owned by the Becker Group to
Troy, Michigan-based Becker Ventures L.L.C.
In July 1998, Johnson Controls acquired the Becker Group -- a leading
automotive interior supplier in North America and Europe. Becker Ventures,
created in 1999 by former Becker Group owner Charles Becker, has purchased
eight injection-molding facilities that produce trim and small interior
components and two tooling operations. Terms of the transaction were not
disclosed, and the deal was finalized today. The agreement is retroactive to
January 1, 1999.
The manufacturing plants Becker Ventures has acquired include facilities
in Clawson, Owosso (two sites), Roseville and Sterling Heights, Michigan;
Havre de Grace, Maryland; Nashville, Tennessee; O'Fallon, Missouri; and J.B.
Rath tooling operations in Madison Heights and Sterling Heights, Michigan. An
administrative office in Sterling Heights, Michigan also is included in the
sale. In addition, Engineered Plastic Products, an Ypsilanti, Michigan-based
minority supplier has been acquired by Becker Ventures.
Johnson Controls continues to own and operate all of the European
facilities it purchased from Becker Group last year, as well as several North
American sites. Among the manufacturing locations being retained are plants in
Auburn Hills, Battle Creek and Rochester Hills, Michigan; Cottondale, Alabama;
Oklahoma City, Oklahoma; and Puebla, Mexico.
In December, Johnson Controls sold Megatech Engineering, Inc. to MSX
International. Megatech previously was part of the Becker Group organization.
"We have sold parts of the former Becker Group that are not an appropriate
strategic fit with our core automotive interiors business," said John Barth,
president and chief operating officer for Johnson Controls. "In purchasing
Becker Group last year, we accomplished our goal of significantly expanding
our interior capabilities in Europe and adding key component capabilities in
North America."
This recent sale to Becker Ventures marks the end of Johnson Controls'
divestiture of North American facilities formerly part of the Becker Group,
acquired by the company in 1998. The company is retaining former Becker Group
operations in North America that supply instrument panels, overhead systems,
door panels and consoles.
As part of the agreement with Becker Ventures, Johnson Controls will
purchase interior components on some vehicle programs from the new company.
"We're pleased to acquire a number of the successful Interior and tooling
operations of the former Becker Group, and to be part of a new supply
arrangement with Johnson Controls," said Charles Becker, principal in Becker
Ventures.
Johnson Controls, Inc. is a global leader in automotive systems and
facility management and control. In the automotive market, it is a major
supplier of seating and interior systems, and batteries. For non-residential
facilities, Johnson Controls provides building control systems and services,
energy management and integrated facility management. Johnson Controls,
founded in 1885, has headquarters in Milwaukee, Wisconsin. Its sales for 1998
totaled US$12.6 billion.
For access to other Johnson Controls news releases and additional company
information, visit the company's site on the World Wide Web at
http://www.johnsoncontrols.com.
CONTACT: David Roznowski of Johnson Controls, 734-254-5632; or Charles
Becker of Becker Ventures, 248-526-0441.
Company News On-Call: http://www.prnewswire.com/comp/473547.html or fax,
800-758-5804, ext. 473547.