Delphi $202 million 500 thousand to sell lead-acid battery business to JCI

Delphi Co (Delphi Corp.) has sold its battery product line to Milwaukee based Johnson Controls Inc. (JCI), which does not include the two American business sector, the transaction amounted to $202 million 500 thousand. The sale of the battery product line is consistent with the current product portfolio reorganization plan.

Sold the business including SLI lead-acid battery Delphi global business, including joint ventures in the interests of. The deal also includes tools, inventory, equipment, intellectual property and trademark names, as well as battery product line. In addition, about 2700 employees will be transferred to JCI. The business consolidated revenue of approximately $600 million per year. Before sale, Delphi global battery product line to original equipment manufacturers to produce lead-acid batteries, and to spare parts sales of original equipment. Is the battery production business, in the United States, Delphi respectively have two battery manufacturing plant in Fitzgerald, New Jersey, New Asia George Brunswick; and in the world, the company in France Sarreguemines, Brazil Pilar Sica Ba and Mexico Tlaxcala built battery manufacturing plant; and the company is still China Shanghai, Saudi Dammam and South Korea Kumi in a joint venture.

The deal took effect in June 30th, Delphi interest in its global battery factory (in addition to the United States business department) has been transferred to JCI. Delphi is expected to sell two steps in the global battery business. The first step, JCI took over the Delphi global supply contracts, and buy in France, Brazil, Mexico Delphi battery production business department and the China in South Korea, Saudi Arabia and joint venture equity; further in the future, JCI take Delphi operations in the US original equipment manufacturer customer level supplier responsibility. Delphi has signed an agreement on production and supply arrangements to become a two tier supplier of JCI, and at the same time, the production of products to JCI in the transition phase. The second step, according to the agreement between Delphi and its partners, is expected to acquire Delphi JCI in New Jersey, Brunswick's new business unit. Prior to the signing of Delphi's business agreement with its customers and before the final discussion with UAW, George Asia's Fitzgerald business unit will remain part of Delphi, and become a new production line at the end of the transition phase.