EnerSys Announces Agreement to Acquire Quallion LLC
READING, Pa., Oct. 28, 2013 /PRNewswire/ -- EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, today announced that it has entered into an agreement to acquire Quallion LLC, a manufacturer of lithium ion cells and batteries for high integrity applications for $30 million. Headquartered in Sylmar, CA, Quallion's products include lithium ion cells and batteries for diverse applications including medical devices, defense, aviation and space. The closing of the transaction is subject to customary closing conditions.
"This acquisition provides EnerSys with an entry into the rapidly growing medical device battery markets for both implantable and external devices," said John D. Craig, chairman, president and chief executive officer of EnerSys. "With the United States government's Title III investment of $65 million in Quallion's cathode and anode production equipment, we will have the capability to produce lithium ion materials and for satellite batteries. In addition to being the only domestic battery manufacturer to control the complete production process, by combining Quallion with our ABSL space business, EnerSys becomes the largest domestic provider of battery technology to the space industry. We anticipate that this transaction will be accretive to our earnings by 3 to 5 cents per diluted share during the first full year following acquisition."
EnerSys, the global leader in stored energy solutions for industrial applications, manufactures and distributes reserve power and motive power batteries, chargers, power equipment, and battery accessories to customers worldwide. Motive power batteries are utilized in electric fork trucks and other commercial electric powered vehicles. Reserve power batteries are used in the telecommunications and utility industries, uninterruptible power supplies, and numerous applications requiring standby power. The company also provides aftermarket and customer support services to its customers from over 100 countries through its sales and manufacturing locations around the world.
More information regarding EnerSys can be found at www.enersys.com
Quallion designs, fabricates and manufactures state-of-the-art lithium ion cells and battery packs, and develops new battery chemistries for the military, aerospace, medical and automotive industries. Building on its legacy leadership position in the medical device industry, the company has developed a range of novel enabling technologies that includes the world's smallest implantable secondary battery and the proprietary Zero-Volt ™ and SaFE-LYTE ™ technologies. Leveraging its core engineering capabilities, Quallion has established itself as a leader in applications where advanced battery technology, safety, reliability and custom engineering are most valued. Quallion LLC was founded in 1998.
More information regarding Quallion can be found at www.quallion.com
For more information, contact Richard Zuidema, Executive Vice President, EnerSys, P.O. Box 14145, Reading, PA 19612-4145, USA. Tel: 800-538-3627
Caution Concerning Forward Looking Statements
This press release and EnerSys' other public pronouncements contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by the words "will," "expects," "anticipates," "believes," "estimates" or similar expressions and include EnerSys' expectations as to future revenue growth, earnings and accretion to earnings. These forward-looking statements reflect management's view of future events and financial performance. These statements are subject to risks, uncertainties, assumptions and other important factors, many of which may be beyond EnerSys' control, and could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Factors that could cause actual results to differ from such statements include, but are not limited to: (i) the occurrence of any event, change or other circumstances that could give rise to the termination of the agreement; (ii) the failure to receive, on a timely basis or otherwise, the required government or regulatory agencies approvals; (iii) the risk that a closing condition to the proposed acquisition may not be satisfied; (iv) the ability of Quallion LLC to maintain relationships with customers, suppliers and other business partners pending the consummation of the proposed acquisition; and (v) other factors described in "Risk Factors" and "Caution Concerning Forward Looking Statements" in EnerSys' Annual Report on Form 10-K for the fiscal year ended March 31, 2013 and reports on Forms 10-Q and Forms 8-K thereafter.
The forward-looking statements are and will be based on management's then current views and assumptions regarding future events and speak only as of their dates, even if subsequently made available by EnerSys or Quallion on their respective websites or otherwise. EnerSys undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the securities laws.