WALTHAM, MA – A123 Systems, a developer and manufacturer of advanced Nanophosphate lithium iron phosphate batteries and systems, announced Dec. 11 that it has received approval from United States Bankruptcy Court for the District of Delaware to sell substantially all of A123's assets to Wanxiang America Corporation. The Court has also granted approval for A123 to sell its government business to Navitas Systems.
As previously announced, A123 and Wanxiang have agreed to terms on an asset purchase agreement through which Wanxiang would acquire substantially all of A123's assets for $256.6 million. The sale is subject certain closing conditions, including approval from the Committee for Foreign Investment in the United States (CFIUS). Excluded from the asset purchase agreement with Wanxiang is A123's Ann Arbor, Mich.-based government business, including all U.S. military contracts, which would be acquired for $2.25 million by Navitas Systems through a separate asset purchase agreement.
"Receiving Court approval of our asset purchase agreement with Wanxiang and Navitas is an important step toward finalizing the sale of A123's assets, and we are now focused on CFIUS approval of the sale to Wanxiang, which we are confident that we will receive given the structure of this transaction," said Dave Vieau, CEO of A123. "We believe an acquisition by Wanxiang will provide A123 with the financial support necessary to strengthen our competitive position in the global vehicle electrification, grid energy storage, and other markets, and we look forward to completing the sale."
Additional information is available on A123's website at www.a123systems.com or by calling A123's Restructuring Hotline, toll-free in the U.S., at 1-800-224-7654.