Invensys selling Energy Storage Group for $505 million

London, U.K. - Invensys plc announced Jan. 7 that it is selling its Energy Storage Group (ESG) to EnerSys Inc. (Reading, Pa.) for $505 million in cash.


London, U.K. - Invensys plc announced Jan. 7 that it is selling its Energy Storage Group (ESG) to EnerSys Inc. (Reading, Pa.) for $505 million in cash. Invensys will use these funds to reduce existing debt, much of which has occurred in its control and automation operations.

As part of the sale, Invensys will be issued warrants that, if exercised, may give it up to a 28% equity stake in the enlarged company. EnerSys, an industrial batteries supplier, is a private company controlled by Morgan Stanley Capital Partners IV, L.P. The transaction also incorporates an agreement governing the ongoing supply of batteries by the enlarged EnerSys back to Invensys.

Invensys adds this transaction is subject to regulatory approval, in particular in the U.S., France and China. EnerSys adds expects to compete financing arrangements in March 2002, and complete the purchase shortly thereafter.

'This significant transaction continues our board's focus on reducing the level of indebtedness of Invensys through the disposal of non-core assets. It will also create a more focused Power Systems division, that is better positioned to serve its customers in partnership with an industry leading batteries supplier,' says Rick Haythornthwaite, Invensys' ceo. 'The supply agreement ensures supply of top quality components for our Power Systems division, and will continue to enable the synergies between ESG and the Power Systems division to be realised. The warrants give our shareholders the opportunity to benefit from the value creation that the enlarged EnerSys has the potential to achieve. We are pleased with the terms of this transaction, which has been achieved in a challenging environment for corporate transactions and many of the sectors that ESG supplies.'

John Craig, EnerSys' ceo, adds, 'This acquisition significantly enhances the strategic positioning and scale of EnerSys. The enlarged EnerSys, combining the U.S.-based strength of EnerSys and the European-based strength of ESG, will result in the world's largest industrial battery company. The expanded product portfolio, which includes leading brands such as Hawker, Exide, General and Powersafe, will offer customers the widest product selection from any one manufacturer. The combined worldwide manufacturing and distribution network will position the company to serve our global customer base, and offer exciting opportunities for our employees.'

No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Make Big Data and Industrial Internet of Things work for you, 2017 Engineers' Choice Finalists, Avoid control design pitfalls, Managing IIoT processes
Engineering Leaders Under 40; System integration improving packaging operation; Process sensing; PID velocity; Cybersecurity and functional safety
Mobile HMI; PID tuning tips; Mechatronics; Intelligent project management; Cybersecurity in Russia; Engineering education; Road to IANA
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
click me