Skip to main content

Clarios International launched an initial public offering on Tuesday valuing the battery maker at US$11.2-billion, more than three times what a consortium led by Brookfield Asset Management Inc. paid for the company two years ago.

Milwaukee, Wisconsin-based Clarios said in a regulatory filling it plans to sell 88.1 million shares between US$17 and US$21 each, which would bring in US$1.85-billion at the top end of that range, and value the company’s equity at US$11.2-billion. Clarios’s enterprise value, including debt, would be approximately US$18-billion.

Private equity investors Brookfield and the Caisse de dépôt et placement du Québec bought Clarios from Johnson Controls International in 2019 for an enterprise value of US$13.2-billion, paying for the acquisition with US$3-billion of equity and US$10.2-billion of debt.

Entities affiliated with Toronto-based Brookfield and the Montreal-based Caisse will continue to hold 80.1 per cent of shares in Clarios after the offering, the company said.

Clarios sells its products in more than 140 countries, with a third of cars on the road globally using its batteries, according to its website. The Clarios IPO has been under way for more than two months and comes at a time when several high-profile startups, including online brokerage Robinhood and electric-vehicle firm Rivian, are planning to list their shares.

Clarios said in a regulatory filing that revenue dropped 11 per cent to US$7.6-billion for the year ended Sept.30, 2020, with a net loss of US$399-million as the COVID-19 pandemic dented demand. It had reported a profit of US$25-million a year earlier.

Clarios plans to list its shares on the New York Stock Exchange. BofA Securities and J.P. Morgan are lead underwriters for the Clarios offering.

With files from Reuters

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe