The initial public offering of Glendale-based
Clarios LLC what value the company's equity at more than $10.7 billion, the former battery unit of Johnson Controls International revealed Tuesday.
The battery maker will sell nearly 88.1 million shares between $17 and $21 each, which would net the company about $1.62 billion assuming an IPO price of $19 per share, according to a U.S. Securities and Exchange Commission filing.
Clarios had confidentially filed for a listing in May –
previous reports suggested the company aimed to be valued at $20 billion and that its IPO would come this month. Including the company's debt, the enterprise could be valued at as much as $18 billion.
The company plans to use the proceeds of the public offering to repay $750 million in notes maturing in 2025 and 2026. Proceeds will also be used to repay $975 million in unsecured notes and $485 million in borrowings on its term loan.
Clarios has a robust portfolio of battery technologies designed to power virtually every type of passenger, commercial and recreational vehicle, from conventional to fully electric. Its primary customers are global automakers, wholesale distributors, auto retailers and big box stores.
The company was created when Johnson Controls spun off its power solutions business and sold it for $13.2 billion in May 2019 to Brookfield Business Partners, a Canadian private equity firm, and Caisse de dépôt et placement du Québec (CPDQ), an institutional investor that manages public pension plans in Quebec.
Clarios’ ownership group will hold 80.1% of shares in Clarios following the offering, according to the filing. The company will be traded on the New York Stock Exchange under the symbol (BTRY).
Clarios has the number one market position in both the Americas and EMEA, and the number three market position in Asia. The majority of demand for Clarios products comes from the aftermarket channel, driven by consumer replacements.
In 2021, Clarios reported about $2.1 billion in sales for the third quarter ending June 30th, up 36% from the same period in 2020. The power solutions business, under JCI, reported $1.84 billion during the third quarter of 2018 and $1.61 billion for the third quarter in 2017.
Clarios’ headquarters remains on the same corporate campus as Johnson Controls and although new security measures have been added to separate the two businesses’ operations, they still share some services, including a gym, a cafeteria and a nurses’ station.
A 2020
BizTimes Milwaukee cover story took an extensive look at the company.
