Johnson Controls to Acquire Fiamm's Automotive Battery Business
HANOVER, Germany and MILWAUKEE, Oct. 26, 2006 -- Johnson Controls, Inc. , the leading global provider of automotive batteries, today announced it has reached a preliminary understanding concerning the acquisition of Fiamm's automotive battery business. Specific terms of the agreement were not disclosed.
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Fiamm is a privately held global player in automotive components (starting batteries, acoustic warning devices, horns and antennae) and stationary batteries. Headquartered in Italy, it has annual sales of euro 460 million.
The business to be acquired, which has annual revenues of approximately euro 190 million primarily associated with the automotive aftermarket, would include Fiamm's battery operations in Avezzano and Veronella Italy along with sales and warehouse operations across Eastern and Western Europe. Fiamm's Mlada Boleslav Czech Republic plant is not included in the transaction.
The acquisition enables Johnson Controls to expand its aftermarket presence throughout Europe, including the fast growing Eastern European countries. In addition, Johnson Controls will bring its world class quality and product & process technology to Fiamm customers across Europe.
"We expect that this acquisition will enable us to expand our presence in key European markets and more effectively provide pan-European manufacturing and outstanding services to the aftermarket customer base in Europe," said Walther Wever, vice president and general manager of the power solutions business in Europe and president of VARTA Automotive AG. "This acquisition allows us to add some powerful regional brands, like Fiamm and Akuma, to our portfolio of brands that already includes the market leader in Europe- VARTA."
The transaction is expected to close by the end of the calendar year 2006, subject to negotiation and execution of a definitive acquisition agreement and receipt of European Union antitrust approval.
Johnson Controls is the leading global provider of automotive batteries. The company manufactures and distributes more than 110 million batteries annually, and is the world's largest producer of power-storage devices for passenger vehicles and other applications. Johnson Controls produces and markets many of the world's leading battery brands including Optima(R), VARTA (Europe and Asia), LTH (Mexico) and Heliar (Brazil).
Johnson Controls has made forward-looking statements in this document pertaining to its agreement to acquire Fiamm's automotive battery business that are based on preliminary data and are subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future risks and may include words such as "believes," "forecasts," "expects," "outlook" or similar expressions. For those statements, the company cautions that numerous important factors, including the completion of the transaction with Fiamm, as well as those factors discussed in the company's Form 8-K (dated October 6, 2006) could affect the company's actual results and could cause its actual consolidated results to differ materially from those expressed in any forward-looking statement made by, or on behalf of, the company.
Johnson Controls is a global leader in interior experience, building efficiency and power solutions. The company provides innovative automotive interiors that help make driving more comfortable, safe and enjoyable. For buildings, it offers products and services that optimize energy use and improve comfort and security. Johnson Controls also provides batteries for automobiles and hybrid-electric vehicles, along with systems engineering and service expertise. Johnson Controls has 136,000 employees in more than 1,000 locations serving customers in 125 countries. Founded in 1885, the company is headquartered in Milwaukee, Wisconsin. For additional information, please visit http://www.johnsoncontrols.com/ .
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