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DETROIT (WWJ/AP) – Electric car battery maker A123 Systems has filed for bankruptcy protection and its automotive assets are being acquired by Johnson Controls. The deal is for $125 million.
Under the terms of the agreement, Johnson Controls plans to acquire A123′s automotive business assets, including all of its automotive technology, products and customer contracts; its facilities in Livonia and Romulus; its cathode powder manufacturing facilities in China; and A123′s equity interest in Shanghai Advanced Traction Battery Systems Co., A123′s joint venture with Shanghai Automotive.
“We believe the asset purchase agreement with Johnson Controls, coupled with a Chapter 11 filing, is in the best interests of A123 and its stakeholders at this time,” said David Vieau , Chief Executive Officer of A123.
“Our interest in A123 Systems is consistent with our long-term growth strategies and overall commitment to the development of the advanced battery industry,” said Alex Molinaroli , president, Johnson Controls Power Solutions.
A123 Systems, based in Massachusetts, has three locations in Metro Detroit, and received a $249 million grant from the federal government three years ago to help it build a battery factory in Michigan.
On Monday, A123 warned that it would likely miss some debt payments.