EnerSys Acquires Quallion Gains Entry into Medical Devices Market
EnerSys, Inc. 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, California, 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."
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 â„¢ and SaFE-LYTE â„¢ 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.