Yuasa to Become EnerSys; Recent Changes with Exide Technologies and Morgan Stanley Dean Witter
Yuasa Inc. (Reading, PA) has undergone a series of serious changes lately. Exide Technologies (Princeton, NJ) recently sold off its 13.5-percent interest in Yuasa for $29.9 million. Exide expects to report a pre-tax gain of approximately $13.0 million on the sale of the investment in its third fiscal quarter, the proceeds of which will be used to reduce debt.
Meanwhile, Management and Morgan Stanley Dean Witter Capital Partners have acquired the motive power and stationary power business units of Yuasa. The acquired company will continue to provide advanced stored-energy solutions for high-growth markets such as telecommunications and the Internet, and other markets such as utilities, UPSs and materials handling.
In announcing the acquisition, John D. Craig, chairman, president and CEO of Yuasa, commented, "We are taking advantage of a unique opportunity to leverage a tremendous existing capability with added resources to be part of the explosive growth of the Internet and telecom industries. The market for energy/power systems and products in these industries is projected to grow at a rate of more than 20 percent per year over the next five years. Our existing capabilities, coupled with the financial strength of our partners, MSDW Capital Partners, will help us achieve our ambitious yet very realistic business goals of being closely tied to that growth."
The organization will continue to operate as Yuasa Inc., through December 31, 2000. Effective January 1, 2001, the company will change its name to EnerSys Inc.
In addition to Craig, the EnerSys's management team will be headed by Charles K. McManus, executive vice president of stationary power business; Michael T. Philion, executive vice president of finance and CFO; John A. Shea, executive vice president of motive power business; and Richard W. Zuidema, executive vice president of administration and international. All four have extensive combined experience with Yuasa and the stored-energy systems and related markets.
Worldwide revenues of the motive and stationary power business units of Yuasa/EnerSys were $427.1 million for the 12 months ended September 2000. The company employs over 3,000 people globally, including 2,500 in the US. Approximately 220 employees of Yuasa/EnerSys are located at the Reading headquarters.
Craig added, “Together with Morgan Stanley Dean Witter Capital Partners, we can rapidly move forward to extend our legacy of stored dc energy systems innovation and expertise. Our mission is to enhance our position as a world-class provider of fully integrated stored-power solutions. Our current offerings, coupled with new financial resources and strategic vision, put us in the perfect position to do just that."
The remaining operations of the former company will operate as Yuasa Battery Inc. P. Michael Ehlerman has been appointed chairman, president and CEO of that operation. The parent company, Yuasa Corporation of Japan, will retain 100 percent ownership of Yuasa Battery Inc.