Johnson Controls to acquire bankrupt battery maker A123 Systems

  • 16-Oct-2012 07:35 EDT
A123CellFamily1.jpg

A123 Systems makes lithium-ion battery cells in a number of different formats, sizes, and capabilities.

A123 Systems announced on Oct. 16 that it is filing for Chapter 11 bankruptcy protection as part of a plan to sell its automotive business assets to Johnson Controls in a transaction valued at $125 million. Those assets include all of its automotive technology, products, and customer contracts; its facilities in Livonia and Romulus, MI; its cathode powder manufacturing facilities in China; and A123's equity interest in Shanghai Advanced Traction Battery Systems Co. The asset purchase agreement also includes provisions enabling Johnson Controls to license back to A123 certain technology for its grid, commercial, and government businesses. In conjunction with the proposed asset purchase agreement, Johnson Controls will provide A123 with $72.5 million in to support the latter's operations until the sale is finalized.

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