MILWAUKEE — Johnson Controls announced that it is acquiring 100 percent ownership of Grupo IMSA, a joint venture automotive battery business that the company shared with a group of Mexican and South American partners.
Grupo IMSA is the leading automotive battery producer in Mexico and South America. The company reported fiscal 2003 sales and operating income for the business of $429 million and $88 million, respectively. Johnson Controls has been a major customer of the joint venture since it was formed in 1998.
The business operates four manufacturing plants and one lead recycling plant in Mexico, as well as one manufacturing plant in Brazil. In addition to supplying Johnson Controls, the business is a major supplier to the Mexican and South American battery aftermarkets, as well as to wholesalers and original equipment service channels. It supplies batteries under the brands, LTH and AMERICA in Mexico and under the name HELIAR in South America.
Approximately 20 percent of the company’s sales are to the original equipment market, including such customers as Ford, DaimlerChrysler, Volkswagen and Nissan. Eight percent of the business goes to the aftermarket, with such customers as Walmart, Autozone, Costco and Carrefour, among others. The joint venture has 3,100 employees.
Johnson Controls will pay approximately $525 million, including the assumption of debt, for the remaining 51 percent of the company. The transaction is expected to be completed in this fall. The company said it expects the acquisition to provide incremental revenue of $250 million and to be accretive to its earnings in fiscal 2005. The investment is expected to be initially funded with short-term debt.
For additional information, visit: www.johnsoncontrols.com.
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