EnerSys announced that it has reached an agreement to acquire a majority interest in Energia AD, a producer of industrial batteries located in Targovishte, Bulgaria. The total purchase price for this transaction is expected to be approximately €13 million (approximately $17 million) including all transactions costs and adjustments and will be financed using existing EnerSyscredit facilities . Subject to finalizing integration plans, this transaction is expected to be accretive to earnings per share in the first year and accretive in excess of $0.07 per share in the second year.
"This transaction is consistent with two of our strategic objectives," said John Craig, Chairman, President and CEO of EnerSys. "First, the acquisition provides us with an additional low-cost manufacturing platform with substantial expansion potential. Second, the acquisition increases our market presence in the rapidly growing Eastern European and Russian markets."
Completion of the transaction is subject to the satisfaction of customary closing conditions, including the receipt of government consents. The transaction is expected to close in April 2007.
EnerSys also announced the completion of the previously announced acquisition of the industrial lead-acid battery business of the Swiss company, Leclanche SA.
