The former Johnson Controls Power Solutions Group has been renamed Clarios by its new owner, Brookfield Business Partners. According to the company, Clarios is the largest automotive battery manufacturing company in the world, with a projected $8 billion in revenue.
The goal for Clarios is to aggressively explore ways to meet fast-growing energy storage needs, and help create a more efficient and sustainable approach to energy storage.
“At Clarios, our vision is to power progress by creating the world’s smartest energy storage solutions that benefit people, business and the planet,” Joe Walicki, president of Clarios and former vice president and president at Power Solutions, said in a statement.
“As a global leader with a product used in virtually every vehicle from conventional to fully electric, we are well positioned to capitalize on market trends, including a move toward more electrified and autonomous vehicles, which are elevating the critical role of the battery and accelerating the need for more advanced batteries,” Walicki said. “Under Brookfield’s ownership, we can better capitalize on these growing trends and operate with more focus and efficiency.”
Brookfield found the JCI battery business attractive, in part, because it makes up more than 75% of the battery replacement market and has extensive aftermarket, OEM and retail relationships in more than 150 countries, CEO Cyrus Madon said on Brookfield’s May 1 earnings conference call.
The deal, with the help of institutional partners, closed April 30 for a purchase price of about $13.20 billion. The transaction was funded with $3.00 billion of equity, of which Brookfield Business Partners expects its share to be $750 million for a 25% ownership interest, which will be determined once institutional partner participation is finalized.
The company will maintain its current global manufacturing and operations footprint, including its corporate headquarters in Glendale, WI.