TROY, Mich. (July 1, 2005) — Delphi Corp. has sold its battery product line to Johnson Controls Inc. for $202.5 million.
Troy-based Delphi said the sale, which excluded two U.S. operations, is part of its portfolio-restructuring plan. Included in the sale are Delphi's global starting, lighting and ignition lead-acid battery operations, including joint venture interests. The deal also encompasses tools, inventory, equipment, intellectual property and brand names associated with the battery product lines. The business generated about $600 million annually globally, and 2,700 employees will transfer to Johnson Controls.
Delphi manufactured batteries in two U.S. plants, in Fitzgerald, Ga., and New Brunswick, N.J., three international plants and three joint ventures.
Delphi's interest in its global plants were transitioned to Johnson Controls June 30 except for the U.S. operations. However, Delphi said Johnson Controls is expected later to purchase the New Brunswick plant pending agreement between the two companies and the unions. The Fitzgerald plant is expected to stay under Delphi's control but change to a new product line at the end of this transition period.