Johnson Controls plans to acquire Borg Instruments, an automotive electronics company with headquarters in Remchingen, Germany.
Borg Instruments, with sales in 2002 of 55 million Euros, specialises in high-end instrument clusters, reconfigurable and other information displays, centre stack display modules, electronic parking assistance and its ‘Quo Vadis ‘navigation system.
Based on existing customer orders, Borg Instruments sales are expected to grow at over 35% a year through 2006. Its major customers include BMW, DaimlerChrysler, PSA Peugeot Citroen, General Motors/Opel, Volkswagen Group and Ford/PAG.
John M. Barth, Johnson Controls president and chief executive officer, said that the acquisition of Borg would strengthen Johnson Controls’ interiors electronics capabilities and will be the base for the development of its high-end electronic instrument clusters activities. In addition, he anticipated transferring the Borg technology to the North American and other markets.
The purchase price was not disclosed. However, Johnson Controls said it will be a cash transaction. It also said that it anticipates the acquisition, which is expected to close during summer 2003, to be accretive to Johnson Controls earnings in fiscal 2004. The completion of the acquisition is contingent upon receiving customary regulatory approvals.
Borg Instruments has 400 employees, including 120 research and development engineers, and two manufacturing plants in Remchingen and St. Georgen, Germany. The majority owner of the company is Borg Luxembourg SA.