EnerSys Completes Acquisition of the Alpha Technologies Group of Companies

EnerSys (NYSE: ENS) announced today that it has completed its acquisition of the Alpha Technologies Group of companies (the “Alpha Group”). The acquisition of the Alpha Group will accelerate and advance EnerSys’ competitive position and enable it to deliver an expanded product portfolio across the broadband, telecom, renewable and industrial markets.


“We are very excited to have quickly closed this important transaction and can officially welcome Alpha to the EnerSys family,” said EnerSys President and Chief Executive Officer David M. Shaffer. “EnerSys’ combination with Alpha creates the only fully-integrated DC power and energy storage solution provider for broadband, telecom and energy storage systems, enabling us to offer a uniquely differentiated value proposition to the marketplace. This offering will allow EnerSys to further penetrate existing applications, expand into new markets and better retain business over time.”

Shaffer added, “Our acquisition of Alpha will allow EnerSys to achieve meaningful economies of scale in the short term, while simultaneously increasing our leadership position in a growing market with attractive secular trends. With an expanded total addressable market of approximately $20 billion, combined with an extremely robust product and service offering following the Alpha transaction, we are well positioned to deliver long-term growth and value for our shareholders.”

EnerSys expects the acquisition to generate annual run-rate synergies in excess of $25 million and to be accretive to EnerSys’ earnings, excluding any one-time or acquisition related costs. Under the terms of the acquisition agreement, EnerSys acquired the Alpha Group for $750 million consisting of $650 million in cash and $100 million in EnerSys shares. The equity component of the consideration resulted in Fred Kaiser, the Alpha Group’s founder, owning approximately 3% of EnerSys following the acquisition.

In order to finance the cash portion of the acquisition, EnerSys entered into an Incremental Term Loan Lender Joinder Agreement, Increase Agreement and First Amendment to Credit Agreement pursuant to which, among other things, EnerSys and certain of its subsidiaries incurred incremental term loans of $300 million, and completed an amendment of its existing revolving credit agreement that increases its borrowing capacity under the revolving facility from $600 million to $700 million. In addition, EnerSys will utilize $200 million of its cash balances.

EnerSys retained Goldman Sachs & Co. and Evercore as financial advisors and Holland & Knight LLP and Reed Smith LLP as legal advisors on the transaction. The Alpha Group retained William Blair as financial advisor and Baker McKenzie as legal advisor.

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