DETROIT -- Gentex Corp. plans to acquire the HomeLink product line from Johnson Controls Inc. for about $700 million, Reuters reported last week.
The sale is expected to close near the end of September. Johnson Controls said it expects to announce the sale of the rest of its electronics business before its next earnings report.
HomeLink, a vehicle-based system that allows drivers to remotely activate garage door openers, entry door locks, home lighting, security systems and other products, has been integrated into Gentex products for more than a decade.
Gentex, which makes automatic-dimming rearview mirrors and camera-based lighting and driver-assist systems, said the deal would boost its annual revenue by $125 million to $150 million.
Gentex, of Zeeland, Mich., ranks No. 98 on the Automotive News list of the top 100 suppliers to North America with an estimated $484 million in parts sales to automakers in fiscal 2012.
Johnson Controls also makes car interiors and batteries, and heating, cooling and ventilation systems for buildings.
The company said net income rose 38 percent to $594 million in the fiscal third quarter ended June 30, from $431 million a year earlier.
The company said its European auto business was profitable after a loss in the previous quarter. Auto sales in Europe have hit 20-year lows, causing many companies in the sector to post losses, close plants and cut jobs.
The auto unit, Johnson Controls' largest business, had a sales increase of 4 percent thanks to higher vehicle production in North America and Asia, partly offset by lower volumes in Europe.
For the rest of the year, the company expects auto production to remain strong in China, improve in North America and show signs of stability in Europe.
Johnson Controls, of Milwaukee, ranks No. 6 on the Automotive News list of the top 100 global suppliers with worldwide parts sales to automakers of $22.52 billion in fiscal 2012.