French automotive parts maker Valeo SA (FR.FR) and
privately-held V. Johnson Enterprises of the U.S. Monday said they
have formed a joint venture called Detroit Thermal Systems (DTS) to
acquire Ford Motor Co's (F) climate control business, Automotive
Comonents Holdings, for an undisclosed sum.
MAIN FACTS:
- The move will give Valeo a leadership position in the U.S. in
the automotive thermal systems sector.
- V. Johnson Enterprises, an entity owned by Detroit
entrepreneur Vincent Johnson, will hold 51% of DTS, while Valeo
will hold the remaining 49%.
- Ultimately, DTS will employ around 500 people.
- The ACH plant at Sheldon Road, Plymouth Township produces
heating and air conditioning components and systems for a large
number of Ford vehicles.
. Valeo will become a member of Ford's Aligned Business
Framework supplier program.
- ACH was created in 2005 after Ford took over 17 plants of its
former subsidiary Visteon Corp (VC) to ensure a supply of parts,
while preparing them for sale. It is the last unit that remained to
be sold.
- Valeo has been interested in ACH's business for several years.
It signed a memorandum of understanding in 2006, but the deal fell
through when talks with the United Auto Workers collapsed.
Write to David Pearson at david.pearson@dowjones.com
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