Monday, November, 30, 2020 03:24:51

Exide Technologies, an American lead-acid batteries manufacturing company, has recently announced that it has signed a Stock & Asset Purchase Agreement with EX Holdings, Inc. As per the agreement, the company will substantially sell its business operations in the Americas to the wholly owned subsidiary of Quexco, EX Holdings.

Under the agreement, a binding bid of nearly $170 million in cash will be provided to Exide, which is subject to adjustments, as well as certain liabilities assumptions related to the assets acquired by the company. The agreement is also subject to certain regulatory approvals or conditions.

The deal has been entered after recording a strong marketing process. This bid to obtain the Americas business significantly complements the previously announced agreement to sell Exide’s Asia Pacific and EMEA business to a group of noteholders.

According to Exide’s CEO, President, & Chairman, Tim Vargo, the company has evaluated other attractive bids prior to reaching the agreement with EX Holdings to strengthen its Americas business in the long-term. EX Holdings is a highly experienced industry player, which will aid the company in delivering enhanced energy storage solutions & services to the customers by collaborating with its team of experts.

The deal is anticipated to assist Exide in continuously and efficiently operating its businesses. It is also subject to the Bankruptcy Court approval and under the Bankruptcy Code’s Section 363 to higher offers. The company is also expected to hold the business auction in July 2020.

From the new proposed agreement, 23 non-operating properties of the company were also excluded. Exide iscollaborating with various agencies to ensure an orderly transfer of the properties.

Weil, Gotshal & Manges LLP served as Exide’s legal counsel, with Houlihan Lokey Capital and Ankura Consulting Group as the investment banker and financial advisor respectively. Kasowitz Benson Torres LLP and K&L Gates LLP served as the legal counsel to EX Holdings, with Wells Fargo Securities, LLC as the financial advisor.

Source credit:

https://www.prnewswire.com/news-releases/exide-technologies-announces-stalking-horse-purchase-agreement-for-sale-of-americas-businesses-to-ex-holdings-a-wholly-owned-subsidiary-of-quexco-incorporated-301090512.html