Clarios International IPO: Everything you need to know about Clarios
Rebecca Cattlin August 4, 2021 11:38 AM
Clarios, global leader in automotive battery production and subsidiary of Brookfield Asset Management, has delayed its NYSE listing. When the company eventually lists, it'll be worth an estimated $11 billion. Find out everything you need to know about the company and its potential IPO.
Clarios International was set to go public on July 30, listing its shares on the New York Stock Exchange under the ticker BTRY – with its mandatory convertible preferred stock being listed as BTRY PRA. However, due to volatility and Robinhood Markets Inc pricing at the bottom of its IPO marketed range, Clarios has now delayed its IPO. The new date for the listing is unknown.
BofA Securities and J.P. Morgan are joint lead book-running managers for the IPO.
How to trade Clarios
When Clarios lists, you’ll be able to trade its shares in the same way you would any other publicly-traded company on the stock market.
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How much is Clarios worth?
How much is Clarios worth?
Clarios is worth $11.2 billion, including its mandatory convertible preferred stock. This is based on the maximum price target for its upcoming IPO in which it will offer 88.1 million shares at a price range of $17 to $21. The company states it has a complete enterprise value of $18 billion.
The WI-based company plans to raise $1.7 billion, which it will put toward paying off its debts.
What does Clarios do?
Clarios is a global manufacturer of low-voltage vehicle batteries and is a leading supplier of energy storage solutions. The company’s products have both commercial and industrial applications.
Clarios holds the number one position in its sector in both America and Europe, selling more than 140 million batteries a year. It produces approximately one third of the automotive industry’s battery technologies.
The company operates across 56 worldwide facilities with more than 16,000 employees.
How does Clarios make money?
Clarios makes money through sales of its product portfolio, including starting, lighting and ignition batteries (SLI) and advanced technologies including enhanced flooded batteries (EFB) and absorbent glass mat batteries (AGM). Clarios also develops and manufactures lithium-ion batteries for selected markets.
Clarios’s products are sold through other brands such as VARTA, LTH, Heliar, OPTIMA and MAC, as well as providing private label brands to customers such as DieHard, Interstate and Bosch.
Approximately 80% of the company’s unit volume and gross profit was generated through its aftermarket channel – creating replacement parts for other vehicles. The remaining roughly 20% is generated through the OEM channel, which is comprised of sales to major car, commercial vehicle, motorcycle, marine, powersports vehicle and industrial manufacturers globally – including Ford, General Motors, Volkswagen, Tesla, Daimler, BMW, Toyota and Caterpillar.
What is Clarios's business strategy?
Clario’s business strategy is what’s known as a replacement-driven business model. On average, automotive batteries have to be replaced between two and four times in the lifespan of a vehicle, and as a critical component, there’s no question as to whether or not the owner would need to buy a new part. This means that Clarios’s leading position within the industry gives it a good foothold to receive recurring demand.
Clarios says it continues to invest in operations and technology, identifying two main areas of growth: adding capacity to its Advanced Battery tech, and expanding its market share in China.
Clarios expects its Advanced Battery tech to see increasing demand, so the company is looking at providing better electrical performance compared to its older technologies, driving innovation and outperforming competitors. It will put more money to R&D partnerships in the coming years.
Clarios has set its sights on China, which is the fastest growing car parc (total number of vehicles in a region) in the world. The company currently has more than a 40% market share and expects even more growth in the region with its next-generation models.
Is Clarios profitable?
Clarios has been profitable but revealed an annual loss in 2020 after taking a hit amid the Covid-19 pandemic. Clarios reported $7.6 billion in revenue for the year ended September 30, 2020, which was an 11% decline from the previous year. Its net loss was $399 million versus a $25 million profit a year earlier.
Find out how to read earnings reports
Clarios intends to use the net proceeds it receives from its IPO to pay down its debts. Clarios will also be looking to cut its costs, having identified the potential to reduce outgoings by over $400 million according to its SEC-1 filing.
Who owns Clarios?
Clarios is owned by Brookfield Business Partners. The Wisconsin-based company was bought in 2019 for $13.2 billion. Prior to the acquisition, Clarios was known as Johnson Controls Power Solutions.
Brookfield Business Partners itself is a subsidiary of Brookfield Asset Management, which is the umbrella for 26 subsidiaries including Brookfield Infrastructure Partners and Brookfield Properties Retail.
Board of directors of Clarios
Take a look at Clarios's board of directors and management team.
- Mark Wallace, President, CEO and Director
- Diarmuid O’Connell, Chairman of the Board and Director
- John Barkhouse, Director and Business Operations at Brookfield Business Partners
- Ron Bloom, Director and Managing Partner at Brookfield Business Partners
- Catherine Clegg, Director
- Stephen Girsky, Director
- Michael Norona, Director
- Justin Shaw, Director
- Maryrose Sylvester, Director
- Betrand Villion, Director
- Mark Weinberg, Director
- Chris Eperjesy, Chief Financial Officer
- Anthony Moore, Vice President and General Manager, United States and Canada
- Gerardo Gonzalez-Aleu, Vice President and General Manager, Latin America
- Jennifer L. Slater, Vice President and General Manager, Original Equipment and Products
- Leslie Wong, Vice President and General Manager, China, Asia Pacific
- Dr. Werner Benade, Vice President and General Manager, Europe, Middle East, Africa
- Claudio Morfe, Vice President, General Counsel and Corporate Secretary
- Wendy Radtke, Chief Human Resources Officer
- Becky Kryger, Vice President and Global Controller
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