Court Approves A123 Systems Acquisition by Wanxiang, Navitas
Navitas Systems, a provider of energy-enabled system solutions and energy storage products for commercial, industrial and government agency customers, announced that the U.S. Bankruptcy Court for the District of Delaware has approved the sale of A123 Systems’ Ann Arbor, MI-based government business, including all U.S. military contracts, for $2.3 million to Navitas.
A123 is a developer and manufacturer of advanced Nanophosphate lithium iron phosphate batteries and systems for the transportation, electric grid, commercial and government markets.
Alan ElShafei, chairman and founder of Navitas Systems, said, “In our due diligence of A123’s government business leading up to last week’s auction, we received detailed briefings on the impressive depth and breadth of A123’s proprietary Nanophosphate lithium ion battery chemistry and other advanced technologies being developed for critical government and military applications. Based on this group’s robust and vital technology roadmap, we’re absolutely committed to invest in the people and infrastructure needed to continue delivering outstanding U.S.-designed battery solutions to military and government customers.”
The Navitas team intends to continue to invest in the Ann Arbor R&D facility to enhance its focus on research and development of advanced chemistry batteries and low-volume cell manufacturing. The closing on this transaction is expected in early 2013.
Separately, China’s Wanxiang Group Co. received permission by U.S. Bankruptcy Judge Kevin Carey to purchase A123’s automotive, grid and commercial business assets, not including the government business bought by Navitas, for $256.6 million.
The transaction is now to be reviewed by the Committee on Foreign Investment in the U.S.
Previously on abfjournal.com: