US-based A123 Systems, the bankrupt advanced-battery company bankrolled in part by federal stimulus money, has agreed to sell its commercial business to China-based auto-parts manufacturer, Wanxiang America Corp, for nearly $257m, subject to approval from the US federal government.
Wanxiang’s winning offer beat a combined offer from Milwaukee-based auto-parts manufacturer Johnson Controls and Japan-based electronics maker NEC Corp.
In August Wanxiang agreed to invest up to $465m in A123, with the potential of acquiring up to 80% of the company in return, but A123 failed to receive the first tranche and entered bankruptcy proceedings in October. Subsequently A123 said it would sell its assets to US-based industrial group Johnson Controls for $125m but lawyers for Wanxiang appeared in A123’s bankruptcy court to reaffirm the Chinese group’s interest in buying the US battery company.
The deal Follows a four-day private auction. The deal would cover all of A123′s automotive and electric grid business, including facilities in Massachusetts, Michigan, and Missouri.
Pin Ni, president of Wanxiang America, said: “We plan to build on the engineering and manufacturing capabilities that A123 has established in the US and we are committed to making the long-term investments necessary for A123 to be successful”.
During its lifetime A123 raised $503m in venture funding including a $249m grant by the US Department of Energy in 2009.
In November last year, A123 Systems built on its partnership with Japan-based industrial equipment manufacturer IHI by licensing its battery technology to IHI in return for IHI investing $25m in A123.