Delphi Looks to Unload Battery Business

Delphi Corporation has signed a non-binding letter of intent with Johnson Controls Inc. to sell its global lead-acid battery business for approximately $212.5 million U.S.
In statements by J.T. Battenberg III, chairman and CEO of Delphi Corporation, the company reports that the intent of the action is intended to help the company focus its resources.
"We are continuing to refine our product portfolio and the sale of this business frees up resources, helping us focus on our growing product lines for both original equipment and independent aftermarket customers," says Battenberg.
The transaction is subject to negotiation of definitive agreements, due diligence, completion of information and consultation procedures with the Works Councils in Europe, final negotiations with the UAW and IUE, and necessary corporate and regulatory approvals, as well as certain other closing conditions.
Delphi has already consolidated the production of its Anaheim and Olathe battery operations into its two remaining battery operations at New Brunswick, New Jersey and Fitzgerald, Georgia. The ultimate disposition of these two remaining U.S. facilities will be determined based upon final negotiations with the UAW and IUE, and conclusion of the definitive acquisition agreement with JCI.