Johnson Controls To Acquire 90% Stake In Delkor
Johnson Controls has signed an agreement to acquire 90% of its existing joint venture with Delkor, an automotive battery manufacturer based in Seoul, South Korea.
According to Johnson Controls, the remaining 10% will be acquired by the local management team, with all transactions completed no later than August 15, 2010. It will also invest around $90m in the acquisition.
In addition, the company is expected to invest an additional $40m to add 2.7 million units in capacity, which will increase Delkor's total capacity to around 10 million batteries per year.
The local management team, led by HS Kwon, president of Delkor, will remain in place and will continue to operate day-to-day business, as Delkor integrates into Johnson's network and technology.
Alex Molinaroli, president of power solutions at Johnson Controls, said: “Delkor is a strong and well-respected brand in Asia. The acquisition further represents our commitment to local manufacturing presence and growth in Asia, complementing our recent announcements regarding our planned investments in China.
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