A123 Systems completes sale of assets to Wanxiang subsidiary, Navitas

By Caroline Salls

Pittsburgh, Jan. 29 - A123 Systems LLC, a newly formed, wholly owned subsidiary of Wanxiang America Corp., has completed its acquisition of substantially all of the non-government business assets of A123 Systems, Inc., according to an A123 Systems LLC news release.

Included in the Wanxiang sale agreement, which was approved by the Committee on Foreign Investment in the United States, are A123's automotive, grid and commercial business assets, including technology, products, customer contracts and U.S. facilities in Michigan, Massachusetts and Missouri; its manufacturing operations in China; and its equity interest in joint venture Shanghai Advanced Traction Battery Systems Co.

According to an A123 Systems, Inc. news release, the company also completed the sale of some of its assets to Navitas Systems LLC.

A123 said the government business, including U.S. military contracts, has been acquired by Navitas.

As previously reported, Wanxiang has agreed to pay $256.6 million in cash for most of A123's assets and assume specified liabilities. Meanwhile, Navitas has agreed to pay $2.25 million for the company's government-business assets.

"We are excited to add A123 Systems to our growing portfolio of companies as we continue to expand on our strategy of investing in the automotive and cleantech industries in the U.S.," Wanxiang America president Pin Ni said in the A123 Systems LLC release.

"Wanxiang America will continue to foster the technologies A123 has worked so hard to develop, and we believe this combination positions A123 for long-term success."

A123 Systems LLC said it will leverage its industry-leading research and development capability to bring innovations at the chemistry, cell and system level to market while also ramping up manufacturing at its facilities in Michigan and Massachusetts to meet demand from customers in three core business area, including transportation, electric grid and lead-acid replacement.

In addition, A123 will continue operating its existing manufacturing facilities in China.

Based in Waltham, Mass., A123 designs, develops, manufactures and sells rechargeable lithium-ion batteries and battery systems. The company filed for bankruptcy on Oct. 16 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 12-12859.

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