US metal-based chemistry firm OM Group has acquired battery maker Ener-Tek International (Ener-Tek) for $24m.
Rhode Island-based Ener-Tek manufactures lithium-ion and silver-zinc batteries for the defence and aerospace markets. According to Ohio-headquartered OM Group, the company aims to offer a wider range of products with the transaction of Ener-Tek and its subsidiary Yardney Technical Products.
“This acquisition reflects our strategy of building out our existing business platforms with complementary acquisitions,” said Joe Scaminace, chairman and CEO of OM Group and added that Ener-Tek broadens the group’s battery business division.
OM Group also said that the deal is aimed to foster synergies with its existing EaglePicher Technlogies subsidiary, a battery manufacturing company of lead-acid, lithium and nickel-hydrogen batteries.
“The acquisition is expected to be accretive to our profitability and generate an attractive return on investment,” added Scaminace. The takeover is expected to close before the end of the year.
The OM Group is currently selling off parts of its own businesses that focus on commodity sales of chemicals, while acquiring battery firms and selling parts of them to remain profitable.