ENS

Enersys (ENS) Completes Acquisition of Bren-Tronics

Enersys (NYSE: ENS) has successfully completed the acquisition of Bren-Tronics, marking a significant milestone in its strategic growth and expansion initiatives. The acquisition, valued at an all-cash transaction of $208 million, is expected to strengthen Enersys' position as a critical enabler of the energy transition and support its growth in the military and defense end markets.

Bren-Tronics, a leading manufacturer of highly reliable portable power solutions for military and defense applications, reported sales of approximately $100 million in 2023. The purchase price represents approximately 8.7x Bren-Tronics' adjusted EBITDA for the twelve months ending December 31, 2023.

Enersys anticipates that the acquisition will accelerate its transformation by expanding its lithium product offerings, growing revenue and profitability, and advancing toward its fiscal year 2027 targets. The company is set to 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, 2024, at 9:00 am (ET).

The acquisition of Bren-Tronics, a company with approximately 280 employees across the U.S., France, and the U.K., will see it being integrated within Enersys' specialty line of business. This acquisition is expected to be immediately accretive to Enersys.

Reed Smith LLP served as the legal advisor to Enersys, while Stout, a global advisory firm, served as the financial, tax, and IT advisor in connection with the transaction.

The acquisition of Bren-Tronics is a strategic move by Enersys to further solidify its presence in critical defense applications and expand its offerings in the military and defense end markets. Today the company's shares have moved 1.5% to a price of $109.91. Check out the company's full 8-K submission here.

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