Conglomerate Johnson Controls has announced that it may sell its Power Solutions division, which provides batteries to the automotive sector.
“Creating shareholder value is our top priority,” said CEO George Oliver. “Our focus is on improving operational execution, realizing merger synergy and productivity benefits, and optimizing the business portfolio. Given the differing dynamics of [Johnson’s different divisions], we are evaluating strategic alternatives for Power Solutions.”
“Over the years our team has built Power Solutions into an incredible business with a high-margin aftermarket model that has delivered consistent growth through business cycles,” Oliver continued. “These strong fundamentals, as well as recently issued provisions of US tax reform, will be taken into account as we…assess which option creates…the most value for shareholders.”
Any divestment could have a noticeable impact on the EV industry, considering that Power Solutions manufactures battery technology for virtually every type of vehicle. In fiscal year 2017, Power Solutions generated $7.3 billion in revenue and $1.6 billion in earnings.