MILWAUKEE (July 21, 2004) — Johnson Controls Inc. has acquired 100-percent ownership of its joint venture with Grupo IMSA S.A. de C.V. in a Mexican and South American automotive battery business.
Milwaukee-based Johnson Controls, which claims to be the world's largest manufacturer of lead-acid automotive batteries, said it will pay approximately $525 million—including the assumption of debt—for the remaining 51 percent of Grupo IMSA. The transaction, subject to regulatory approvals, is expected to be completed this fall.
The acquisition is anticipated to provide incremental revenue to Johnson Controls of $250 million, the company said, and to be accretive to its earnings in fiscal 2005. The investment is expected to be initially funded with short-term debt.
Grupo IMSA operates four manufacturing plants and one lead recycling plant in Mexico, as well as a manufacturing plant in Brazil. In addition to supplying Johnson Controls, the firm is a major supplier to the Mexican and South American battery aftermarkets.
In the U.S., Johnson Controls supplies original equipment batteries to DaimlerChrysler, Ford, Honda, Nissan and Toyota. It also supplies private-label aftermarket batteries for Advance Auto, AutoZone, Costco Wholesale Inc., Interstate Battery System of America, Pep Boys—Manny, Moe & Jack, Sears, Roebuck and Co., Wal-Mart Stores Inc. and other companies. In Europe, the company manufactures original equipment automotive batteries for BMW, DaimlerChrysler, Ford, PSA, Volkswagen and other automakers.
A holding company dating back to 1936, Grupo IMSA is one of Mexico's leading diversified industrial companies. It operates in four business areas: steel processed products; automotive batteries and related products; steel and plastic construction products; and aluminum and other related products. The firm has manufacturing and distribution facilities in Mexico, the U.S., Europe and throughout Central and South America.