Johnson Electric has entered into an agreement to acquire certain select manufacturing assets of the automotive electric seat motor business of ArvinMeritor’s Light Vehicle Systems division.
Terms of the sale were US$11.7 million.
ArvinMeritor currently manufactures seat motors at plants in Esson, France, Queretaro, Mexico and Gordonsville, Tenn., USA.
Johnson Electric plans to consolidate all seat motor production at the Johnson Electric manufacturing complex in Shajing, China. The seat motor manufacturing assets of ArvinMeritor will be completely transferred to Johnson Electric in China by mid-2002.
During this transition period, ArvinMeritor will act as a manufacturing subcontractor to Johnson Electric to ensure continuity of motor supply.
According to Jim Dick, director of Strategic Marketing for Johnson Electric, ‘This business acquisition supplements our existing growth strategy, and provides Johnson Electric with an entry into a high growth segment of the automotive industry. We expect to attain sales of US$50 million in the first year.’