KPS Capital Partners announced today that its portfolio company C&D Technologies, Inc. has agreed to acquire Trojan Battery Company, LLC from Charlesbank Capital Partners, LLC and other shareholders. Financial terms of the transaction were not disclosed.
The combined company will have eight manufacturing facilities in the United States (California, Georgia, Indiana and Wisconsin), Mexico and China; a joint venture operation in China; two advanced research and development centers dedicated exclusively to deep-cycle battery technologies; and international offices located in Europe, the United Arab Emirates and Asia.
David Shapiro, a Managing Partner of KPS, said, "KPS acquired C&D to serve as a platform in the global energy storage industry, and the industrial logic of combining C&D and Trojan is extremely compelling. Trojan is an iconic brand name and we look forward to accelerating its growth by leveraging C&D's global reach and strong technological capabilities. We look forward to working closely with the management team and employees of C&D and Trojan to build the global leader in the energy storage industry."
Armand Lauzon, Chief Executive Officer of C&D, added, "This is a historic moment for both C&D and Trojan and I look forward to leading the new company into the future. Given C&D and Trojan's complementary portfolios of global manufacturing plants, markets and products, this is a highly compelling combination with tremendous strategic value and an exciting multi-segment growth opportunity. We are committed to preserving everything about C&D and Trojan that our respective loyal customers, suppliers and employees have come to expect over the years, while also using our larger scale and resources to take advantage of many exciting new opportunities."
Neil Thomas, Chief Executive Officer of Trojan, added, "The combination of Trojan and C&D creates a powerful new leader in the energy storage and transmission industry. The combined company will take a leading role as the energy storage industry rapidly evolves and grows in scale and sophistication. I am excited about KPS and C&D's commitment to manufacturing excellence, which I believe will further Trojan's ambitious growth initiatives and provide attractive opportunities for our hard-working employees."
Completion of the transaction is expected by year end 2018 and is subject to customary closing conditions and approvals.
Paul, Weiss, Rifkind, Wharton and Garrison LLP served as legal counsel to KPS and C&D with respect to the transaction.