Valeo J-V Acquires Ford's Automotive Thermal Systems Unit

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 [e-mail]

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