A123 sellautomotive business assets Johnson Controls

A123 to sell the automotive business assets to Johnson Controls

10:52 AM, 19th October 2012
A123 to sell the automotive business assets to Johnson Controls

WALTHAM, US: A123 Systems Inc, a developer and manufacturer of advanced nanophosphate lithium iron phosphate batteries and systems, has entered into an asset purchase agreement with Johnson Controls Inc in a transaction valued at $125 million.

Johnson Controls plans to acquire A123’s automotive business assets, including all of its automotive technology, products and customer contracts; its facilities in Livonia and Romulus, Michigan; its cathode powder manufacturing facilities in China, and A123’s equity interest in Shanghai Advanced Traction Battery Systems Co, A123’s joint venture with Shanghai Automotive.

To facilitate the transaction process, A123 and all of its US subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of Delaware. The Company’s subsidiaries located outside the US were not included in the filings. This action is expected to allow the Company to provide for an orderly sale of the automotive business assets and all other assets and business units under Section 363 of the Bankruptcy Code and enable the Company to maximize the value of its assets for its stakeholders in a controlled, court-supervised environment.

“Our interest in A123 Systems is consistent with our long-term growth strategies and overall commitment to the development of the advanced battery industry. Requirements for more energy efficient vehicles continue to increase, which is driving automotive manufacturers to pursue new technologies across a broad spectrum of power trains and associated energy storage solutions. We believe that A123’s automotive capabilities are a good complement to our existing portfolio and will further advance Johnson Controls’ position as a market leader in this industry,” said Alex Molinaroli, President, Johnson Controls Power Solutions.

© WOC News 

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