PLYMOUTH, Mich. — Johnson Controls Inc. (JCI) has formed a joint venture to acquire the interior product assets of Dearborn, Mich.-based Plastech Engineered Products, which filed for bankruptcy in February 2008.

Johnson Controls owns 70 percent of the joint venture. Certain Plastech term lenders hold the minority position. Johnson Controls said it contributed $135 million in cash and five injection molding plants to the joint venture. The lenders contributed their rights to receive Plastech’s interiors assets obtained in exchange for certain Plastech debt.

Johnson Controls said the transaction is expected to negatively impact its 2008 fourth-quarter earnings by approximately 3 cents per share. The joint venture is expected to break even in 2009 and be accretive to earnings by fiscal 2010.

The joint venture includes 29 plants in North America, which manufacture injection molded components and assemblies such as door panels and floor consoles.

Johnson Controls will also be the largest customer of the joint venture. Annual sales are expected to total $1.2 billion, of which $500 to 600 million will be incremental to its parent company. JCI has negotiated multi-year production contracts with the joint venture’s key automotive customers.

"Through this new joint venture we are better able to leverage our scale and operational excellence to improve quality and profitability. It also creates a strong and reliable supplier for our customers who have been very supportive of our plans," said Jeff Williams, group vice president and general manager, North America for the Automotive Experience business of Johnson Controls. "Johnson Controls has consistently expressed its commitment to growth in the automotive interiors business and we believe today’s transaction will help us achieve that goal."

For additional information about JCI, go to: www.johnsoncontrols.com.