August 2, 2024: International battery company, EnerSys, announced on July 26 that it had closed the acquisition of Bren-Tronics, a manufacturer of portable power products for defense customers, including small and large format lithium batteries. EnerSys CEO David Shaffer had confirmed in early May that the acquisition was going to go ahead.
Bren-Tronics had 2023 sales of approximately $100 million. EnerSys bought Bren-Tronics for an all-cash transaction of $208 million. The purchase price represents approximately 8.7x Bren-Tronics’ adjusted EBITDA for the 12 months ending December 31, 2023. The transaction will be immediately accretive to EnerSys.
EnerSys CEO, David Shaffer said: “This is a strategic move that will strengthen our position as a critical enabler of energy transition and supports our growth in the attractive and growing military and defense end market.
“Having partnered with Bren-Tronics to support the Department of Defense for over five years, we know the company well. We have tremendous respect for their outstanding products that support our military every day and which help save lives on the front lines.”
Bren-Tronics, headquartered in Commack, New York was previously a privately held company and a manufacturer of portable power solutions, including small and large format lithium batteries and charging solutions, for military and defense applications. It has approximately 280 employees in the US, UK and France. Bren-Tronics will be integrated within EnerSys’ Specialty line of business.
Bren-Tronics CEO Sai Fung said that combining with EnerSys “is an exciting opportunity” that will make it possible for the two organizations, “to leverage our respective strengths to solve critical DOD energy storage challenges together”.
EnerSys said it will provide further updates on the strategic and financial benefits of the acquisition as well as integration plans during its first quarter fiscal 2025 earnings call scheduled for August 8,
Reed Smith LLP served as legal adviser to EnerSys in connection with the transaction. Stout, a global advisory firm, served as financial, tax, and IT advisor to EnerSys in connection with the transaction.
This all follows an announcement, last February, that EnerSys had selected Greenville, South Carolina to develop a lithium-ion cell gigafactory to advance battery production in the US. The company said the new factory represented a long-term opportunity to enable growth and allow them to optimise cell sizing in battery solutions for their customers.
EnerSys expects construction to begin in early 2025 and operations to be online in late 2027.
