Clarios International, a global manufacturer of low-voltage vehicle batteries, announced terms for its IPO on Tuesday.
The Milwaukee, WI-based company plans to raise $1.7 billion by offering 88.1 million shares at a price range of $17 to $21. The Sponsor intends to purchase $500 million worth of shares in the offering (30% of the deal). The company plans to raise an additional $250 million in a concurrent private placement to GIC. It also plans to make a concurrent offering of 10 million shares of Series A Mandatory Convertible Preferred Stock. At the midpoint of the proposed range, Clarios International would command a market value of $9.7 billion, or $10.2 billion including the conversion of the Series A Mandatory Convertible Preferred Stock.
Clarios' low-voltage vehicle battery portfolio includes starting, lighting and ignition batteries (SLI), its primary product, as well as advanced batteries such as enhanced flooded batteries and absorbent glass mat batteries. Its products are used in conventional, hybrid, and electric vehicles. It distributes its batteries primarily through the aftermarket channel, driven by consumer replacements, as well as OEM channels. The global company states that it has the number one market position in the Americas and EMEA, and the number three position in Asia.
Clarios International was founded in 1885 and booked $8.2 billion in sales for the 12 months ended March 31, 2021. It plans to list on the NYSE under the symbol BTRY. BofA Securities, J.P. Morgan, Barclays, BMO Capital Markets, Credit Suisse, Deutsche Bank, Goldman Sachs, Citi, HSBC, RBC Capital Markets, Scotia Capital, TD Securities, CIBC, and Guggenheim Securities are the joint bookrunners on the deal. It is expected to price during the week of July 26, 2021.
