The JV, Johnson Controls-Saft, was formed in 2006 to develop and manufacture Li-ion vehicle batteries.
Under the agreement, Johnson Controls will pay $145m in cash to purchase Saft’s share of the company.
Johnson Controls’ up-front royalty payment for an expanded license will enable the company to use certain Saft Li-ion technology in all markets.
Johnson Controls will retain all assets of the JV, except a facility in Nersac, France, which will be transferred to Saft at the end of next year.
The agreement is subject to regulatory clearances and is expected to be closed by the end of this month.
Upon completion, Johnson Controls will operate the company and will fulfill the company’s existing contractual agreements and work with customers and suppliers accordingly.
Johnson Controls Power Solutions president Alex Molinaroli said the deal further reflects the company’s strategic commitment to the advanced battery industry.
Saft is a designer and manufacturer of advanced technology batteries for industry.
