Johnson Controls to Buy Battery Business

Battery-maker Johnson Controls Inc. on Thursday announced it has agreed to buy the car battery business of Fiamm Group, a privately held Italian company. The Milwaukee-based company, which also makes automotive interiors and cooling and heating systems for buildings, said it will acquire Fiamm's battery operations, which have annual revenues of about $241 million.

From AFX News Limited

MILWAUKEE — Battery-maker Johnson Controls Inc. on Thursday announced it has agreed to buy the car battery business of Fiamm Group, a privately held Italian company.

The Milwaukee-based company, which also makes automotive interiors and cooling and heating systems for buildings, said it will acquire Fiamm’s battery operations, which have annual revenues of about $241 million.

Terms of the agreement, expected to close at the end of this year, were not disclosed.

Johnson Controls will buy the battery segment’s operations in Avezzano and Veronella and sales and warehouse operations throughout Europe.

Johnson Controls said the acquisition will allow it to expand its presence in Eastern Europe, a fast growing market. Johnson Controls makes 110 million batteries a year and is considered the worldwide leader in automotive batteries. It has 136,000 employees in more than 125 countries.

Fiamm, which also makes other automotive components such as warning devices, horns and other items, has annual sales of $583 million, according to Johnson Controls.

Johnson Controls shares rose $1.03, or more than 1 percent, to close at $83.50 Thursday on the New York Stock Exchange.

Johnson Controls announced fourth-quarter earnings on Wednesday, saying net income rose 27 percent on sales gains, including a doubling of business in the unit that makes environmental control systems for commercial and residential buildings.

The company posted sales in the quarter of $8.2 billion, an 18 percent increase from $6.9 billion during the same period last year.