Exide Technologies, a global provider of stored energy solutions, today announced that it has entered into a Stock and Asset Purchase Agreement to sell substantially all of Exide’s ongoing Americas business operations to EX Holdings, Inc., a wholly-owned subsidiary of Quexco Incorporated, Dallas, Texas, a holding company. Quexco is led by Chairman Howard M. Meyers, who has over five decades of experience in the battery industry.
The Agreement provides the Company with a binding bid of approximately $170 million in cash, subject to adjustments, along with the assumption of certain liabilities related to the acquired assets. EX Holdings plans to retain the entirety of the Company’s Americas workforce supporting the operations acquired. The transaction is subject to certain conditions outlined in the Agreement.
The agreement with EX Holdings was reached following a robust marketing process. This stalking horse bid for the Americas business complements the already-announced agreement to sell the Company’s EMEA and Asia-Pacific business to an ad hoc group of its noteholders.
“After evaluating various attractive bids as part of a comprehensive marketing process, we are pleased to have reached this agreement with EX Holdings to position our Americas business for the long term,” said Tim Vargo, Chairman, President, and Chief Executive Officer of Exide. “We believe moving forward with an agreed offer from a highly experienced industry player who is familiar with our business and has a stated goal of continuing to work with our talented team provides the best opportunity to continue delivering high quality energy storage solutions and service to our customers.”
The Agreement contemplates continued operation of the Company’s businesses. The agreement is subject under Section 363 of the Bankruptcy Code to higher or better offers and approval by the Bankruptcy Court, and the Company expects to hold an auction for the business this month.
The Company’s 23 non-operating properties are excluded from the proposed agreement. Exide continues to collaborate closely with local, state, and federal agencies to achieve an orderly sale or transfer of these properties and ensure they are maintained in a safe and responsible manner.
About Exide Technologies
For more than 130 years, Exide Technologies, LLC (exide.com) has been Powering the World Forward as a global provider of stored electrical-energy solutions for the Transportation and Industrial markets. Headquartered in Milton, Georgia, Exide operates in 80 countries with more than 8,000 employees. Exide produces a range of battery and energy storage systems and specialty applications for the Transportation, Network Power and Motive Power markets and industries including agricultural, automotive, electric, light and heavy-duty truck, marine, materials handling, military, mining, power-sport, railroad, security, telecommunications, utility and uninterruptible power supply (UPS), among others. As one of the world’s largest secondary recyclers, the company is committed to environmental sustainability.