Battery maker EnerSys to acquire company for $750M
October 30, 2018
EnerySys, one of the world’s largest manufacturers of industrial batteries, announced it entered into an agreement to acquire Alpha Technologies for $750 million.
Alpha, based in Bellingham, Wash., is a leading seller of power equipment used in broadband and telecommunications networks.
Alpha generated $591 million in revenue for the fiscal year ending June 30 and adjusted earnings before interest, tax, depreciation and amortization of $67 million.
EnerSys, based in Bern Township, will pay $650 million in cash and the remaining $100 million in either cash or shares.
The deal is expected to close in 30 to 60 days.
EnerSys produces lead-acid and lithium-ion batteries at its headquarters in Bern Township and in 31 factories around the world. For the quarter ended July 1, the company posted net earnings of $11.3 million on sales of $670.9 million, according to filings with the U.S. Securities and Exchange Commission.
David M. Shaffer, president and CEO of Shaffer said in a news release the acquisition of Alpha Group will enable EnerSys to provide its customers “with fully integrated, direct current products and solutions that will ease their equipment deployment process.
“With Alpha, we hope to gain immediate scale, diversify our served end-markets and increase our exposure to industries with attractive secular growth dynamics. We believe that our significantly expanded product portfolio across the broadband, telecom, renewable and industrial markets, and our integrated solutions approach with systems, software and services will uniquely position us to better serve our customers across all end markets and drive innovations. We look forward to welcoming the Alpha organization to the EnerSys family.”