26 Oct Johnson Controls to expand in Europe
Milwaukee, Wis. – An impending acquisition would enable Johnson Controls, Inc., a global manufacturer of more than 110 million automotive batteries annually, to expand its automotive aftermarket presence in fast-growing Eastern European countries, the company said.
In an arrangement the company is calling “a preliminary understanding,” Johnson Controls, which is developing a next-generation hyrid car battery, will acquire the automotive battery business of the Italian components manufacturer Fiamm.
The specific terms of the agreement were not disclosed, but the transaction is expected to close by the end of the calendar year 2006, subject to negotiation and European Union antitrust approval.
The business to be acquired, which has annual revenues of approximately $240 million, is associated with the automotive aftermarket. The sale would include Fiamm’s battery operations in Avezzano and Veronella, Italy, along with sales and warehouse operations across Eastern and Western Europe. Fiamm’s Mlada Boleslav Czech Republic plant is not included in the transaction.
Johnson Controls reported $8.2 billion in 2006 fourth quarter sales, and its power solutions sales increased 14 percent to $981 million.
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