Johnson Controls has “reached a preliminary understanding” concerning the acquisition of Fiamm’s automotive battery business. Specific terms of the agreement were not disclosed.
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Fiamm is a privately held global player in automotive components (starting batteries, acoustic warning devices, horns and antennae) and stationary batteries. Headquartered in Italy, it has annual sales of EUR460 m.
The business to be acquired, which has annual revenues of approximately EUR190m primarily associated with the automotive aftermarket, would include Fiamm’s battery operations in Avezzano and Veronella, Italy, along with sales and warehouse operations across eastern and western Europe. Fiamm’s Mlada Boleslav Czech Republic plant is not included in the transaction.
The acquisition enables Johnson Controls to expand its aftermarket presence throughout Europe, including the fast growing eastern European countries.
“We expect that this acquisition will enable us to expand our presence in key European markets and more effectively provide pan-European manufacturing and outstanding services to the aftermarket customer base in Europe,” said Walther Wever, vice president and general manager of the power solutions business in Europe and president of Varta Automotive.
The transaction is expected to close by the end of the year, subject to negotiation and execution of a definitive acquisition agreement and receipt of European Union antitrust approval.
