EnerSys has confirmed the strategic acquisition of Bren-Tronics, a military battery manufacturer, for $208 million in an all-cash stock purchase agreement. EnerSys, a power solutions provider, is capitalizing on a global upturn in defense spending, which has reached a new high of $2.4 trillion, driven by escalating conficts. Its purchase of Bren-Tronics aims to boost its portfolio in the military and defense market. According to recent data, the U.S. continues to lead military spending, accounting for two-thirds of NATO’s budget, and has augmented its proportion of global arms exports. DealPulse’s M&A analysis highlighted that less than a quarter of recent U.S. deals have been structured as stock purchases, with such arrangements often favored by sellers due to tax advantages and the transferal of liabilities. This particular acquisition features a below-average indemnity cap of 5% of the deal value, compared to the median of nearly 10%. EnerSys’ President & CEO, David M. Shaffer, anticipates the deal will enhance the company’s role as an enabling force in the energy transition. Bren-Tronics is supported by legal counsel from Meister Seelig & Fein PLLC, and Moritt Hock & Hamroff LLP, with financial guidance from Bigelow LLC. EnerSys is receiving legal advice from Reed Smith LLP and financial consultations from Stout.

Aerospace & Defense, Manufacturing, Legal & Financial Services,United States