July 9, 2020: Exide Technologies, the beleaguered US lead-acid battery firm that announced in May it was to be split up and sold, has entered talks for its American business operations to be bought by EX Holdings, a Quexco subsidiary.
The bid was led by Quexco chairman Howard Meyers, who has half a century of experience in the lead battery industry.
In what Exide calls a stalking horse bid for the Americas business, the agreement gives the firm a binding bid of around $170 million, along with the assumption of certain liabilities.
“The agreement with EX Holdings was reached following a robust marketing process,” said Exide. “The 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.”
Exide chairman Tim Vargo said the agreement would ‘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,” he said.
Exide’s 23 non-operating sites are not included in the agreement, and Exide said it was working with local and federal agencies to sell them.
The company has entered Chapter 11 bankruptcy proceedings three times in its 132-year history, and said the final straw came this year with the Covid-19 pandemic.