Alcatel has signed an agreement with the UK-based private equity firm Doughty Hanson. The acquisition complements Doughty Hanson’s existing portfolio of industrial companies. Since its creation in 1985, the firm has invested in more than 60 ventures worth a combined value of more than $20.41 billion (E17.5 billion).
SAFT manufactures industrial and specialty batteries, and is regarded as one of the most well established battery manufacturers for the industrial and telecom sectors.
However, Alcatel was hit hard by the bursting of the high-tech bubble and has had to restructure severely to strengthen its finances. SAFT has been up for sale for several months, and Alcatel had expected to make $816.9 million (E700 million) on the deal. Industry sources had suggested that the favorite to clinch a deal was another battery maker, EnerSys Inc.
The sale of SAFT will allow Paris, France-based Alcatel to focus on its core business, the development and deployment of telecommunications systems and services.
SAFT employs some 4,000 people at 14 sites in eight countries. In 2002, SAFT it reported revenue of $642.4 million (E550 million).
The deal should be finalized within the next three months, and is currently being presented to the Workers’ Council. It will also be submitted for regulatory approval in the appropriate countries, and will be subject to prior approval concerning foreign investments in France.
This article was based on material originally published by ComputerWire.
