Industrial battery company EnerSys has agreed to acquire battery maker NorthStar Battery Co. in a deal that is expected to close in early October, the company said.
Reading, Pa.-based EnerSys is purchasing Sweden-based NorthStar from Altor Fund II for $78 million in cash and the assumption of $104.5 million in debt, according to EnerSys. The deal will add $150 million in annualized revenue to the company and will expand its ability to produce thin-plate pure-lead (TPPL) battery products.
NorthStar has major operations in the United States, including two factories in Missouri, where EnerSys said it plans to build its Odyssey, NexSys, and SBS battery products.
"In line with our previously disclosed strategy to increase sales of premium products, we are excited to announce the acquisition of NorthStar, which will enable EnerSys to dramatically accelerate our sales for TPPL batteries," David M. Shaffer, EnerSys president and CEO said in a statement announcing the deal.
EnerSys also said the acquisition will generate savings of more than $40 million per year due to its ability to localize and speed production in the United States and reduce inventory, freight, duty, and currency risks associated with its current import of products from Europe.
"It will also allow us to better match the rate and amount of future capital expenditure to specific market requirements," Shaffer said.