Johnson Controls to Acquire HOPPECKE Automotive Battery
Business
MILWAUKEE and BRILON, Germany, Aug. 23 Johnson Controls, Inc. and Accumulatorenwerke HOPPECKE Carl
Zoellner & Sohn GmbH today announced that Johnson Controls will acquire
automotive battery manufacturer HOPPECKE Automotive GmbH & Co. KG.
Johnson Controls is a U.S.-based supplier of automotive interior systems
and facility management and control, and is the largest automotive battery
supplier in North and South America. Its original equipment battery customers
include DaimlerChrysler, Ford, Honda, Nissan and Toyota. The company supplies
private-label aftermarket batteries for Advance Auto, AutoZone, Costco,
Interstate Battery System of America, Pep Boys, Sears, Wal-Mart and others.
The privately-held HOPPECKE Automotive, headquartered in Brilon, Germany,
has manufacturing sites in Germany and sales and distribution offices in the
UK and France. The business is expected to generate sales of more than
US$100 million in 2001. HOPPECKE manufactures automotive batteries for
DaimlerChrysler, Ford, MAN, Peugeot, Volkswagen and other automakers in Europe
as well as for a variety of aftermarket customers.
HOPPECKE provides Johnson Controls with new battery technologies. A
typical lead-acid automotive battery has free-flowing electrolyte. HOPPECKE
developed a battery with an absorbent glass mat (AGM) that holds the
electrolyte, thereby preventing spilling or leaking even if the case is
ruptured. This technology, called vlies.tec(R), gives automakers the
flexibility to safely move the battery outside of the engine compartment and
away from its life-shortening heat. Vlies.tec technology also provides more
power and longer life than traditional batteries.
Vlies.tec is used today in HOPPECKE's batteries, and is a core technology
in the batteries it has developed for the emerging 42-volt vehicle electrical
systems. HOPPECKE calls these higher voltage vlies.tec batteries
board.net(R). It is expected that 42-volt systems will become the dominant
automotive standard in the years ahead.
HOPPECKE's sensor.net(R), an intelligent battery management system,
provides simultaneous voltage conversion for both 14-volt and 42-volt engine
components.
"HOPPECKE technology will enable us to be on the forefront of the industry
conversion to 42-volt automotive systems. It is technology that we expect to
leverage throughout our battery business," said Keith Wandell, president of
the Johnson Controls battery business.
Johnson Controls also manufactures a spiral-wound AGM battery under the
brand name OPTIMA.
"With the vlies.tec prismatic flat plate and OPTIMA spiral wound
batteries, Johnson Controls AGM technology is anticipated to cover the
broadest range of cycling requirements for high voltage automobiles," Mr.
Wandell said.
"We are pleased with the agreement with Johnson Controls. Our companies
share a focus on customers and on continuous improvement. The automotive
battery industry continues to become more global, and the combined expertise,
capabilities and reputation of our companies creates unique competitive
advantage," said Claus Zoellner, chairman of HOPPECKE.
"The quality of HOPPECKE's products and the innovations they have brought
to the European market are evidence of a commitment to excellence by HOPPECKE
employees," said Mr. Wandell. "We look forward to a smooth transition and
welcome them to Johnson Controls."
The family-owned parent company of HOPPECKE will continue to operate its
industrial lead-acid and alkaline battery companies.
The transaction is expected to close effective October 1, 2001. The
completion of the acquisition is contingent upon receiving customary
regulatory approvals.
Accumulatorenwerke HOPPECKE Carl Zoellner & Sohn GmbH, founded in 1927,
produces and distributes battery systems worldwide with 15 affiliates and four
production sites in Germany. In the fiscal year 2000, the company's sales
totaled 220 million Euro. For more information, visit http://www.hoppecke.com
