MILWAUKEE,
Wis. — Johnson Controls has signed an agreement to acquire 90 percent
of its existing joint venture with Delkor Corp., a leading automotive
battery manufacturer based in Seoul, South Korea. The remaining 10
percent will be acquired by the local management team, with all
transactions completed no later than Aug. 15, 2010.
“Delkor is a
strong and well-respected brand in Asia,” said Alex Molinaroli,
president of Power Solutions for Johnson Controls. “The acquisition
further represents our commitment to local manufacturing presence and
growth in Asia, complementing our recent announcements regarding our
planned investments in China.”
As Delkor integrates into the Johnson
Controls network and its market-leading technology, the local
management team, led by Delkor President H.S. Kwon, will remain in
place and will continue to run the day-to-day business.
“We have
every confidence that the Delkor management team will continue to serve
our customers with the same reputation they have in the marketplace for
quality and service as we continue to grow the business,” said
Molinaroli.
Johnson Controls will invest approximately $90 million
in the acquisition.
The company is also investing an additional $40
million to add 2.7 million units in capacity, increasing Delkor’s total
capacity to approximately 10 million batteries per year.
The Delkor joint venture was part of Johnson Controls’ acquisition of Delphi’s global automotive battery business in 2005.