ACH's climate control business is located at its Sheldon Road Plant in Plymouth Township, Michigan, US.
Detroit Thermal Systems is the joint venture between Valeo and V. Johnson Enterprises, where V. Johnson Enterprises will have a stake of 51% with the remaining 49% to be owned by Valeo.
According to the company, the sale of ACH's climate control business, which is the is the 10th sale of an ACH operation or plant, expands Ford's business with minority-owned suppliers.
Further, DTS said it is planning to apply for certification as a minority business enterprise through the Michigan Minority Business Development Council.
The Sheldon Road Plant's assets and operations will be transferred to a new DTS manufacturing facility in Romulus, Michigan, starting mid-2013 and will be conclude by the end of 2014.
Valeo chief executive officer Jacques Aschenbroich said the acquisition will help the company not only strengthen its ties with Ford Motor Company in North America and the rest of the world, but also enhance its presence across North America.
"Valeo, in addition, will be a member of Ford's Aligned Business Framework supplier program," Aschenbroich said.
"This new joint venture will enable Valeo to broaden its offering of innovative thermal system products and support its customers in meeting their CO2 emissions reduction challenges."
