Valeo JV will buy Ford's climate control business
Detroit Thermal Systems, a joint venture between French supplier Valeo and U.S.-based company V. Johnson Enterprises, will take control of Ford Motor Co.'s climate control business after the U.S. automaker said it agreed to sell the unit for an undisclosed price.
The business is Ford's last remaining automotive components operation.
Valeo hold a 49 percent share in Detroit Thermal Systems, while V. Johnson Enterprises owns the remaining 51 percent.
The deal will give Valeo, a global player in thermal systems, a firm foothold in the North American market.
"This acquisition is a strategic breakthrough for Valeo that will not only enhance our presence across North America, but also strengthen our ties with the Ford Motor company in North America and the rest of the world. Valeo will be a member of Ford's Aligned Business Framework (ABF) supplier program," said Jacques Aschenbroich, CEO of Valeo, in a statement.
The acquisition will enable Valeo to broaden its range of thermal system products and support its customers in meeting their CO2 emissions reduction targets, Aschenbroich added.
The climate control business was part of Ford's Automotive Components Holdings (ACH). ACH was formed in 2005 when Ford took back from its former subsidiary Visteon Corp 17 plants with the intent of preparing each of the plants for a sale.
Reuters contributed to this report