Johnson Controls sells auto battery unit

Ireland-based industrial conglomerate Johnson Controls agreed to sell its power solutions group to Brookfield Business Partners together with Caisse de dépôt et placement du Québec (CDPQ) for $13.2bn.

Power solutions contains Johnson's automotive battery holdings and generated $8bn in revenue and $1.86bn earnings before interest, taxes, depreciation and amortization during fiscal 2018.

"The business is the market leader in automotive batteries, with significant global reach and market share in both original equipment manufacturers and aftermarket channels," Brookfield Business Partners said. "It is well positioned to benefit from growth in demand for advanced batteries in all vehicle powertrains including electric vehicles."

The transaction, which will allow the Johnson Controls to pay down debt and return some of the proceeds to shareholders, is expected to close by 30 June 2019, subject to regulatory approval.