Johnson Controls, Inc. signed an agreement to acquire 90% of its existing joint venture with Delkor Corporation, a leading automotive battery manufacturer based in Seoul, South Korea. The remaining 10% will be acquired by the local management team, with all transactions completed no later than 15 Aug. 2010.
The Delkor joint venture was part of Johnson Controls’ acquisition of Delphi’s global automotive battery business in 2005.
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.