Gentex To Buy Johnson Controls' HomeLink For $700 Mln - Quick Facts

(RTTNews) - Electro-optical products maker Gentex Corp. (GNTX) has agreed to acquire Johnson Controls' (JCI) HomeLink business, including the assets, intellectual property, testing facilities, and the talented employees, for a price of $700 million. The deal is targeted to close on or about September 30, 2013.

HomeLink, a vehicle-based control system that enables drivers to remotely activate garage door openers, entry door locks, home lighting, security systems, entry gates, and other radio frequency convenience products, has been integrated into Gentex' automatic-dimming rearview mirrors for over 10 years.

During the integration, which may occur over the next 12 to 18 months, Gentex said its customers would continue to receive the same great quality that they have grown accustomed to from Gentex and Johnson Controls.

Following integration, the firm expects its annual revenue to grow in the range of $125 million - $150 million per year, and also sees its gross profit margin to be positively impacted in the range of 1% - 1.5% on a consolidated basis. Further, Gentex anticipates that once the integration is over, operating expenses for the company would be in the range of the company's historical operating expenses as a percent of sales.

Based on these estimates and forecast, the firm forecasts the addition of HomeLink to be accretive to profitability and earnings per share, and a growth driver for the business overall.