Dear Valued Supplier:
We’d like to take this opportunity to give you an overview of developments taking place within the automotive seating and interiors business of Johnson Controls that will supplement information you have already received and address some questions that you may have.
Since last summer, when Johnson Controls announced that it would be spinning off its seating and interiors business into a completely separate, stand-alone company, we have been keeping you informed about our progress via our supplier portal: http://www.johnsoncontrols.com/suppliers/automotive-seating
In January 2016, we announced that the new name of our automotive seating business will be Adient (pronounced “ad-ee-ant”), once it becomes a new, publically traded company on the New York Stock Exchange (NYSE).
In March 2016, we published the names of Adient’s executive team, which is comprised of seasoned Johnson Controls leaders whose names you might be familiar with, or very experienced executives recruited from the automotive industry. These include:
This additional communication is to make sure you understand some details about Adient’s financial strengths – both today and at the moment Adient becomes a publicly traded company.
Adient will be the global leader in the $60 billion market for automotive seating, with approximately $20 billion in consolidated annual revenue, as well as approximately 230 locations in 33 countries. It will be publically traded on the New York Stock Exchange (NYSE) under the ticker symbol “ADNT.”
On April 27, 2016, Johnson Controls announced that Adient has filed its initial Form 10 Registration Statement (“Form 10”) with the U.S. Securities and Exchange Commission (“SEC”). The filing of the Form 10 is a significant milestone in the separation of the automotive seating and interiors business from Johnson Controls and the creation of Adient. The Form 10 includes both historic and forward-looking financial information, and is available to you via our Johnson Controls website (http://investors.johnsoncontrols.com/financial-information/sec-filings), as well as the SEC website (www.sec.gov). A credit-rating is expected to be completed by Moody’s as well as Standard & Poor’s and will be published within the next few months.
Adient will only become a separate entity from Johnson Controls at the actual spin-off date, which is targeted for the fourth quarter of calendar year 2016. Until then, all activities are focused on making Adient a strong, operationally and legally independent organization.
The separation of Johnson Controls and future Adient legal entities is currently underway. This means that internal legal relations between Johnson Controls and Adient must be disentangled and clarified. In some cases, assets will be transferred to newly created legal entities. As part of this process, in some cases new purchase orders need to be created. You have already been informed, or will be informed individually, should your business be affected. Ultimately, most existing Johnson Controls Automotive Seating legal entities will be re-named to bear the Adient name.
Until the actual legal spin-off date, which is targeted for the fourth quarter of this calendar year, all the new legal entities that are being created – whether under the name of Adient or Johnson Controls – are fully owned subsidiaries of Johnson Controls. As such, until the spin-off is complete, they continue to be covered by the financing structures of Johnson Controls, with the same credit worthiness.
As always, we deeply value our relationship with you, and will continue to keep you informed and make this separation as seamless as possible. Please contact your respective commodity buyer with any questions.
Group Vice President Global Purchasing