DETROIT -- Johnson Controls Inc., which makes automotive seats and interiors, will buy a 5 percent stake in Tachi-S Co., a Japanese automotive seating company. Johnson Controls will become the Tokyo company’s largest single shareholder.
On May 20, Johnson Controls, of Milwaukee, will pay ٳ.76 billion yen ($18.6 million) for 1.8 million Tachi-S shares.
The partnership, which was announced April 23, will be led by a management committee represented by both companies. Currently, Johnson Controls and Tachi-S cooperate in various joint ventures in North America, Japan and China.
“Tachi-S brings extensive experience working with Japanese automakers. By teaming up with Tachi-S, Johnson Controls will be able to better serve our Japanese customers.” Jeffrey Edwards, vice president of Johnson Controls Automotive Experience, said in a statement.
The publicly traded Tachi-S, established in 1954, supplies most major Japanese automakers. Tachi-S and its subsidiaries operate in North America, Europe and Asia.
In April, JCI executives said that the company would look at acquisition opportunities in all three of its business segments -- automotive seating and interiors, heating and cooling systems for buildings, and automotive batteries -- and that there were "smaller acquisitions" in the pipeline that could be announced in the next few quarters.