Comprehensive M&A data with integrated detailed company information

EnerSys to charge up a deal with NorthStar
Posted on Friday, 20 September 2019 12:18
EnerSys has agreed to buy Sweden’s N Holding and its US-based subsidiary NorthStar Battery from Altor Fund II for an enterprise value of USD 182.50 million.

The consideration includes USD 78.00 million in cash and the assumption of USD 104.50 million in debt.

Based on the purchase price, the deal represents a multiple of 13.0x the target’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the 12 months ended 31st August 2019.

Subject to customary closing conditions, the transaction is expected to complete within the next 15 days.

Established in 2000, NorthStar claims to be a global leader in the designing and manufacturing of batteries and power services.

The group operates across the reserve power and transportation segments and has two production facilities in Springfield, Missouri.

Its products include the BLUE+ Battery, which contains thin plate pure lead (TPPL) carbon technology that can recharge three times faster than a standard absorbent glass mat.

For the financial year ended 31st August 2019, NorthStar and N Holding posted combined adjusted EBITDA of USD 14.00 million on revenue of USD 157.00 million.

Through the deal, the target will provide floor space which can be used to house the acquiror’s TPPL battery production line, adding USD 175.00 million to the company’s manufacturing capacity.

David Shaffer, president of EnerSys, said: “Finally, NorthStar has blue chip customers in Europe and EnerSys currently imports significant amounts of batteries from Europe into the US market.

“This transaction will allow a rebalancing of factory loading and a dramatic reduction in inventory, freight, duty and currency risks.”

As a result of the deal, EnerSys expects to generate annual savings of more than USD 40.00 million.

Headquartered in Pennsylvania, the purchaser makes and distributes reserve power and motive power batteries, battery chargers and outdoor equipment, among others.

For the quarter ended 30th June 2019, EnerSys posted net sales of USD 780.23 million, up 14.0 per cent from USD 670.93 million in the corresponding period of 2018.

© Zephus Ltd