Johnson Controls Announces Acquisition of Gylling Optima Batteries AB
29 August 2000
Johnson Controls Announces Acquisition of Gylling Optima Batteries AB
MILWAUKEE, Aug. 29 Johnson Controls, Inc. and
Gylling Optima Batteries AB today announced that Johnson Controls will acquire
Gylling Optima.
Gylling Optima, headquartered in Danderyd, Sweden, is a manufacturer of
high performance lead-acid batteries based on its proprietary SpiralCell
Technology (R), marketed worldwide under the OPTIMA brand name. Johnson
Controls, headquartered in Milwaukee, Wis., is the largest automotive battery
manufacturer in North and South America.
Johnson Controls said that it expects to pay cash of approximately
US$62 million for 100% of the company. All shareholders of Gylling Optima
will be offered 20 SEK (approximately US$2.14) per share. A prospectus
describing the transaction will be distributed to all Gylling Optima
shareholders in approximately four weeks. The offer has already been accepted
by the Gylling family, which owns 70% of the share capital and 83% of the
voting stock. Johnson Controls does not currently own or control any shares
in Gylling Optima.
The board of directors of Gylling Optima has recommended that all the
shareholders accept the offer from Johnson Controls. The two companies said
that the completion of the transaction, which is subject to normal
governmental approvals and other conditions, is anticipated by November 30,
2000. In connection with the transaction, Gylling Optima will apply for
delisting of its shares from the O List of the OM Stockholm Stock Exchange.
Johnson Controls said it anticipates the acquisition will be slightly
accretive to its earnings.
In 1999, Gylling Optima Batteries reported sales of US$35 million. OPTIMA
batteries are manufactured at a plant in Aurora, Colo., which is the only
U.S.-based manufacturing facility for this automotive battery technology.
Approximately two-thirds of the sales of the OPTIMA battery are in the U.S.
while the balance is in Europe and Asia.
The OPTIMA battery has a unique look due to its patented "six-pack"
exterior design which echoes its SpiralCell Technology. This technology
involves lead plates that are wound into tight spiral cells, resulting in a
greater amount of surface area which produces more power than
rectilinear-designed automotive batteries in common use today. A porous glass
separator between the plates holds the electrolyte, preventing leakage even if
the case is ruptured, allowing an OPTIMA battery to be mounted in any
position. The construction of the battery makes it highly resistant to
vibration, resulting in extended life.
"Having the world's best-selling spiral-wound battery technology within
Johnson Controls will benefit both our aftermarket and original equipment
customers," said Keith Wandell, president of the Johnson Controls battery
business. "With Johnson Controls sales, marketing and technology resources,
together with the available capacity at the Colorado facility, we expect to
significantly increase sales of this product in the automotive aftermarket as
well as identify 12-volt original equipment applications."
Automotive starting is the largest market for the OPTIMA, yet its rugged
construction has also made it a popular choice for heavy-duty applications,
such as agricultural machinery, construction equipment and marine
applications.
In addition, Johnson Controls said that OPTIMA technology broadens its
battery offerings for the 42-volt automotive electrical systems now under
development by many of the world's automakers.
"Because the OPTIMA battery has more energy and power per pound than
traditional lead-acid batteries, it is an excellent technology for the new
14/42-volt electrical systems, particularly if they are designed to include
only one battery," Wandell said. "For multiple battery system designs, we
continue to offer Johnson Controls Inspira thin metal film battery technology
to fulfill the starting power requirements. With the addition of OPTIMA,
Johnson Controls will have a range of lead-acid technologies for future
automobiles no other battery manufacturer can match."
Johnson Controls said that it will also continue to develop additional
automotive battery technologies for the emerging 42-volt automotive electrical
systems.
"I'm very happy about the agreement with Johnson Controls. This is a
company with an extremely good reputation and the means to realize the full
potential of the OPTIMA project," said Bertil Gylling, founder and principal
owner of Gylling Optima Batteries.