READING, PA — EnerSys (NYSE: ENS), a global leader in stored energy solutions for industrial applications, recently announced its definitive agreement to acquire Bren-Tronics, Inc., a prominent manufacturer of portable power solutions for military and defense applications. The all-cash transaction, valued at $208 million, underscores EnerSys’ commitment to enhancing its Specialty Aerospace & Defense business.
Bren-Tronics, based in Commack, N.Y., is recognized for its innovative portable power solutions, including advanced small and large format lithium batteries and charging systems, primarily serving the military and defense sectors. The acquisition is poised to bolster EnerSys’ engineering and product development capabilities, further enriching its product offerings with Bren-Tronics’ extensive new product roadmap.
The transaction, which represents approximately 8.7 times Bren-Tronics’ adjusted EBITDA for the year ending December 31, 2023, is expected to immediately contribute to EnerSys’ earnings per share upon closing. Scheduled to conclude in the second calendar quarter of 2024, the acquisition awaits regulatory approval and the fulfillment of other standard closing conditions.
David M. Shaffer, President & CEO of EnerSys, emphasized the strategic nature of the acquisition, highlighting the synergistic relationship between the two companies that has developed over five years of partnership supporting the Department of Defense (DOD). The integration of Bren-Tronics within EnerSys’ Specialty line of business is anticipated to drive innovation, enhance service delivery, and strengthen ties with the DOD, benefiting from the complementary nature of their product portfolios.
With approximately 280 employees across the U.S., France, and the U.K., and 2023 sales around $100 million, Bren-Tronics brings a strong legacy of innovation and reliability since its inception in 1973. The acquisition not only strengthens EnerSys’ position in the military and defense end market but also marks a significant step in the company’s strategic initiative to increase its revenue and profitability from lithium products.
EnerSys plans to fund the acquisition using cash on hand, reinforcing its financial strength and commitment to growing its presence in the specialty aerospace and defense sectors. The deal illustrates EnerSys’ dedication to being a critical enabler of the energy transition, leveraging the advanced technology and expertise of Bren-Tronics to cater to the demanding needs of military and defense applications.
Legal advisory services for the transaction were provided by Reed Smith LLP, with Stout acting as the financial, tax, and IT advisor to EnerSys, ensuring a smooth and strategic acquisition process.
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