READING, Pennsylvania, September 29, 2011 /PRNewswire/ --
EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, announced today that it has entered into a definitive agreement to launch a joint venture in South Africa to produce and market batteries for industrial applications.
EnerSys will have majority ownership in the joint venture in cooperation with Powertech Batteries, which is a part of Allied Electronics Corporation Limited (Altron). The joint venture will include Powertech Batteries contribution of its existing industrial lead-acid business including its industrial battery manufacturing facility located in Port Elizabeth, South Africa, plus its existing distribution and service capability. The joint venture will serve both reserve power and motive power customers across sub-Saharan Africa, including South Africa. The transaction will be effective on October 3, 2011.
"This investment serves as a continuation of our strategy to expand geographically to meet the needs of customers in the region and to better serve our global customers," said John D. Craig, chairman, president and chief executive officer of EnerSys. "We believe that this will allow us to serve the rapidly growing sub-Saharan African telecom, mining, energy and logistics markets."
About EnerSys: EnerSys, the global leader in stored energy solutions for industrial applications, manufactures and distributes reserve power and motive power batteries, chargers, power equipment, and battery accessories to customers worldwide. Motive power batteries are utilized in electric forklift trucks and other commercial electric powered vehicles. Reserve power batteries are used in the telecommunication and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions including aerospace and defense systems. The company also provides aftermarket and customer support services to its customers from over 100 countries through its sales and manufacturing locations around the world.
Caution Concerning Forward-Looking Statements
This press release and oral statements made regarding the subjects of this release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, (i) statements regarding EnerSys' plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts, including statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning; and (ii) statements about the benefits of the joint venture, including any impact on our financial and operating results and estimates, and any impact on EnerSys' market position that may be realized from the acquisition.
These forward-looking statements are based upon management's current beliefs or expectations and are inherently subject to significant business, economic, and competitive uncertainties and contingencies many of which are beyond our control. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (1) our ability to successfully operate the joint venture; (2) the possibility that EnerSys may not realize revenue benefits from the joint venture within expected time frames; and (3) competition may adversely affect the joint venture and result in customer loss. The statements in this press release are made as of the date of this press release, even if subsequently made available by EnerSys on its website or otherwise. EnerSys does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date such forward-looking statement is made.
Although EnerSys does not make forward-looking statements unless it believes it has a reasonable basis for doing so, EnerSys cannot guarantee their accuracy. The foregoing factors, among others, could cause actual results to differ materially from those described in these forward-looking statements. For a list of other factors which could affect EnerSys' results, including earnings estimates, see EnerSys' filings with the Securities and Exchange Commission, including "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations," including "Forward-Looking Statements," set forth in the Company's Quarterly Report on Form 10-Q for the period ended July 3, 2011. No undue reliance should be placed on any forward-looking statements.