MILWAUKEE -- Johnson Controls Inc. and Saft said they have reached an agreement to end their joint venture, Johnson Controls-Saft – a company they formed in 2006 to develop and manufacture lithium-ion vehicle batteries.
Under the terms of the agreement, Johnson Controls will acquire Saft's share of the company for $145 million in cash. The agreement includes an up-front royalty payment by Johnson Controls to Saft in return for an expanded license to Johnson Controls to use certain Saft Li-ion technology in all markets. The transaction, which is subject to regulatory clearances, could close as early as Sept. 30.
The parties' agreement to end their relationship will also terminate all legal proceedings between the companies.
Johnson Controls will retain all assets of the joint venture, with the exception of a facility in Nersac, France. That facility will be transferred to Saft at the end of 2012.
Upon completion of the transaction, Johnson Controls will operate the company and fulfill the company's existing contractual agreements.