Troubled US lead-acid battery maker Exide Technologies has entered into an agreement to sell its Americas business operations to EX Holdings, a wholly owned subsidiary of secondary lead producer Quexco Incorporated.
The Stock and Asset Purchase Agreement includes a ‘Stalking Horse’ bid of around $170 million in cash subject to adjustments, along with the assumption of certain liabilities related to the acquired assets.
The agreement contemplates continued operation of Exide’s businesses.
The ‘Stalking Horse’ bid comes as Exide faces down its third Chapter 11 crisis in two decades. It has already has agreed to sell its EMEA and Asia Pacific businesses.
Tim Vargo, chairman, president, and chief executive officer of Exide, said: “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.
“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.”
Quexco is a private holding that owns RSR Corporation (the largest lead smelter in the US, with operations in California, Indiana, New York, and Texas) and Eco-Bat Technologies (a UK-based battery recycler with operations in Europe and South Africa).
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.