US: JCI to buy 90% of Korean battery JV
Johnson Controls (JCI), which on Friday announced a healthy boost in third quarter revenue and profit, said it had agreed to acquire 90% of its existing joint venture with auto battery maker Delkor Corporation in Seoul, South Korea. The remaining 10% will be acquired by the local management team, with completion expected by 15 August.
Korean management headed by Delkor president HS Kwon will continue to run the business.
"Delkor is a strong and well-respected brand in Asia," said JCI power solutions [auto batteries] chief Alex Molinaroli. "The acquisition further represents our commitment to local manufacturing presence and growth in Asia, complementing our recent announcements regarding our planned investments in China."
JCI will spend about $90m on its controlling share plus $40m to add 2.7m units of capacity, increasing Delkor's total output to 10m batteries a year.
The joint venture was part of JCI's acquisition of Delphi's global automotive battery business in 2005.