EnerSys Acquires Chinese Battery
READING, Pa., July 26 /PRNewswire-FirstCall/ -- EnerSys (NYSE: ENS), the
world's largest manufacturer, marketer and distributor of industrial batteries,
announced today it has entered into a definitive agreement to purchase the
assets of Chaozhou Xuntong Power Source Company Limited (CFT), a sealed lead
acid battery business located in Chaozhou, China. The closing of the transaction
is subject to customary conditions.
CFT is a manufacturer of large, 2-volt valve-regulated lead acid batteries
for reserve power applications and has been a valued supplier to EnerSys. EnerSys
will continue to operate the business and plans to rapidly expand production
to meet increasing customer demand for these products.
"We are excited about this acquisition since we are currently unable
to meet our customers' demand for these products," said John D. Craig,
chairman, president and CEO of EnerSys. "This acquisition coupled with
other ongoing investments in our Chinese operations will allow us to increase
our production capacity to support an additional $30 million in sales annually.
It will also allow us to continue our strategy of expanding production in lower
cost regions while allowing us to effectively utilize our world-class global
Caution Concerning Forward-Looking Statements
This press release (and oral statements made regarding the subjects of this
release) contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
may include, but are not limited to (i) statements regarding EnerSys' plans,
objectives, expectations and intentions and other statements contained in this
press release that are not historical facts, including statements identified
by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or
words of similar meaning; and (ii) statements about the benefits of the CFT
transaction, including any impact on financial and operating results and estimates,
and any impact on EnerSys' market position that may be realized from the investment.
These forward-looking statements are based upon management's current beliefs
or expectations and are inherently subject to significant business, economic,
and competitive uncertainties and contingencies many of which are beyond our
control. The following factors, among others, could cause actual results to
differ materially from those described in the forward-looking statements: (1)
our ability to successfully integrate and expand the CFT business; (2) the
possibility that EnerSys may not realize revenue benefits from the CFT investment
within expected time frames; (3) operating costs and business disruption following
the CFT investment, including possible adverse effects on relationships with
employees, may be greater than expected; and (4) competition may adversely
affect the acquired business and result in customer loss. EnerSys does not
undertake any obligation to update any forward-looking statement to reflect
circumstances or events that occur after the date such forward-looking statement
For more information, contact Richard Zuidema, executive vice president,
EnerSys, P.O. Box 14145, Reading, PA 19612-4145, USA. Tel: 800-538-3627; Website:
About EnerSys: EnerSys, the world leader in stored energy solutions for industrial
applications, manufactures and distributes reserve power and motive power batteries,
chargers, power equipment, and battery accessories to customers worldwide.
Motive power batteries are utilized in electric forklift trucks and other commercial
electric-powered vehicles. Reserve power batteries are used in the telecommunication
and utility industries, uninterruptible power suppliers, and numerous applications
requiring standby power. The company also provides aftermarket and customer
support services to its customers from over 100 countries through its sales
and manufacturing locations around the world.
More information regarding EnerSys can be found at http://www.enersys.com.