EnerSys, a manufacturer of industrial batteries, announced today it has entered into a definitive agreement to purchase the assets of Chaozhou Xuntong Power Source Company LTD. (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.
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 distribution network."