- Bren-Tronics, Inc. is a leading manufacturer of portable power
solutions, including small and large format lithium batteries and
charging solutions, for military and defense applications
- Acquisition brings strong engineering and product development
capabilities with extensive new product roadmap
- Complementary product portfolio will strengthen EnerSys’
Specialty Aerospace & Defense business and relationship with
the U.S. Department of Defense
- Lithium expertise accelerates EnerSys’ strategic initiative to
increase revenue and profitability from lithium products
- Expected to be accretive immediately after closing
EnerSys (NYSE: ENS), the global leader in stored energy
solutions for industrial applications, today announced it has
entered into a definitive agreement to acquire Bren-Tronics, Inc.
in an all-cash transaction of $208 million. The purchase price
represents approximately 8.7x Bren-Tronics’ adjusted EBITDA for the
twelve months ending December 31, 2023.
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EnerSys to acquire Bren-Tronics, Inc., a
50-year leader in Intelligent Military Batteries & Charging
Systems™. This acquisition will expand EnerSys’ presence in
critical defense applications. (Photo: Business Wire)
Bren-Tronics, headquartered in Commack, N.Y., is a privately
held company with a legacy of innovation since 1973. Bren-Tronics
is a leading manufacturer of highly reliable portable power
solutions, including small and large format lithium batteries and
charging solutions, for military and defense applications. It has
approximately 280 employees across the U.S., France, and the U.K.,
with 2023 sales of approximately $100 million. Bren-Tronics will be
integrated within EnerSys’ Specialty line of business.
EnerSys plans to finance the acquisition with cash on hand. The
acquisition is expected to be immediately accretive to EnerSys’
earnings per share and is expected to close in the second calendar
quarter of 2024, subject to the receipt of regulatory approvals and
the satisfaction of other customary closing conditions.
“The acquisition of Bren-Tronics is a strategic move that will
strengthen our position as a critical enabler of the energy
transition and supports our growth in the attractive and growing
military and defense end market,” said EnerSys President & CEO
David M. Shaffer. “Having partnered with Bren-Tronics to support
the Department of Defense (DOD) for over five years, we know the
company well. We have tremendous respect for Bren-Tronics’
outstanding products that support our military every day and which
help save lives on the front lines. We have a proven track record
of collaboration, and we know that our company cultures are
well-aligned. Our product portfolios are highly complementary, with
minimal overlap in our product lines. We are excited to integrate
Bren-Tronics' exceptional engineering and product development
capabilities with our own to drive innovation, deliver enhanced
services, and strengthen our relationship with the DOD. We look
forward to welcoming the Bren-Tronics team into EnerSys at closing
anticipated in the coming months.”
“This acquisition will accelerate EnerSys’ progress in expanding
our lithium product offerings, growing revenue and profitability
and advancing toward our fiscal year 2027 targets,” said Mark
Matthews, President, Specialty Global. “The additional product
volume will be well supported by our planned lithium cell
gigafactory. Together, we look forward to setting new standards in
our industry, delivering innovative lithium technologies to our
customers, and continuing to deliver sustainable growth.”
“Joining the EnerSys team is an exciting opportunity for
Bren-Tronics,” said Sai W. Fung, Bren-Tronics President and CEO.
“This combination will allow us to leverage our respective
strengths to solve critical DOD energy storage challenges together.
I am extremely proud of Bren-Tronics’ legacy of reliability and
innovation, and we look forward to building upon our success as a
part of EnerSys.”
Reed Smith LLP served as legal advisor to EnerSys in connection
with the transaction.
Stout, a global advisory firm, served as financial, tax, and IT
advisor to EnerSys in connection with the transaction.
About EnerSys
EnerSys is the global leader in stored energy solutions for
industrial applications and designs, manufactures, and distributes
energy systems solutions and motive power batteries, specialty
batteries, battery chargers, power equipment, battery accessories
and outdoor equipment enclosure solutions to customers worldwide.
The company goes to market through four lines of business: Energy
Systems, Motive Power, Specialty and New Ventures. Energy Systems,
which combine power conversion, power distribution, energy storage,
and enclosures, are used in the telecommunication, broadband and
utility industries, uninterruptible power supplies, and numerous
applications requiring stored energy solutions. Motive power
batteries and chargers are utilized in electric forklift trucks and
other industrial electric powered vehicles. Specialty batteries are
used in aerospace and defense applications, large over-the-road
trucks, premium automotive, medical and security systems
applications. New Ventures provides energy storage and management
systems for various applications including demand charge reduction,
utility back-up power, and dynamic fast charging for electric
vehicles. EnerSys also provides aftermarket and customer support
services to its customers in over 100 countries through its sales
and manufacturing locations around the world. To learn more about
EnerSys please visit https://www.enersys.com/en/
About Bren-Tronics, Inc.
Bren-Tronics is a leading manufacturer of rechargeable batteries
for the Military and several other critical markets, including
Directed Energy, Robotics, and High Energy applications.
Bren-Tronics is a one-stop shop for its customers’ energy needs,
from R&D to comprehensive testing, including certification,
first article, and UN safety testing, and all the way through
manufacturing. To learn more about Bren-Tronics, please visit
https://www.bren-tronics.com/
Caution Concerning Forward-Looking Statements
This press release contains statements which, to the extent that
they are not recitations of historical fact, may constitute
forward-looking statements for purposes of the Securities Act of
1933, as amended (the “Securities Act”), and the Securities
Exchange Act of 1934, as amended. Such forward-looking statements
may include financial and other projections as well as statements
regarding EnerSys’ future plans, objectives, performance,
opportunities, revenues, capabilities, growth, progress, profits,
operating costs or EnerSys’ underlying assumptions. The words
“would,” “should”, “could,” “will,” “likely,” “possibly,”
“expects”, “expected,” “anticipate’, “intend,” “estimate,”
“target,” “probably,” “predict,” “forecast,” “project,” “continue,”
“plans,” “planned”, “look forward to” and “are looking forward to”
or other similar words and phrases may identify forward-looking
statements. Persons reading this press release are cautioned that
such statements are only predictions, and that EnerSys’ actual
future results or performance may be materially different.
Such forward-looking statements involve known and unknown risks
and uncertainties. A number of factors could cause actual results,
events or developments, or industry results, to be materially
different from any future results, events or developments
expressed, implied or anticipated by such forward-looking
statements, and our business and financial condition and results of
operations could be materially and adversely affected. In addition
to factors previously disclosed in EnerSys’ reports filed with the
U.S. Securities and Exchange Commission (the “SEC”), such factors
include, among others, that required regulatory, shareholder or
other approvals are not obtained or other closing conditions are
not satisfied in a timely manner or at all; that prior to the
completion of the transaction or thereafter, the EnerSys’ or the
acquired companies’ respective businesses may not perform as
expected due to transaction-related uncertainty or other factors;
that the parties are unable to successfully implement integration
strategies; reputational risks and the reaction of the companies’
customers and employees to the transaction; diversion of management
time on acquisition-related issues; the integration of acquired
business with EnerSys may take longer than anticipated or be more
costly to complete and that the anticipated benefits, including any
anticipated cost savings or strategic gains may be significantly
harder to achieve or take longer than anticipated or may not be
achieved. All forward-looking statements and information set forth
herein are based on management’s current beliefs and assumptions as
of the date hereof and speak only as of the date they are made.
EnerSys does not undertake to update forward-looking
statements.
Although EnerSys does not make forward-looking statements unless
it believes it has a reasonable basis for doing so, EnerSys cannot
guarantee their accuracy. The foregoing factors, among others,
could cause actual results to differ materially from those
described in these forward-looking statements. No undue reliance
should be placed on any forward-looking statements.
For a complete discussion of the assumptions, risks and
uncertainties related to EnerSys’ business, you are encouraged to
review its filings with the SEC, including the most recent Annual
Report on Form 10-K, as updated by quarterly or other reports
subsequently filed with the SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20240502480096/en/
Lisa Hartman Vice President, Investor Relations and Corporate
Communications EnerSys 610-236-4040 E-mail:
investorrelations@enersys.com
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