Bulgarian lead acid battery producer Monbat Group has acquired two lithium ion battery businesses in Germany, Monbat said in a bourse filing on June 26. The price of the deal was not disclosed. The Bulgarian company is acquiring all assets of Gaia Akkumulatorenwerke GmbH and EAS Germany GmbH and is merging them into the Nordhausen-based EAS Batteries GmbH.

The deal marks Monbat’s entry into the lithium ion segment. The new owner plans to invest more than €5mn in new equipment over the following two years, and also to boost employment. The current premises will be modernised too. The investor will focus on expanding production capacity and commercialising a newly developed cell technology.

A member of Bulgaria’s Prista Oil Group, Monbat produces lead acid batteries and claims to be the largest battery producer in Eastern Europe, exporting to more than 60 countries. The company is listed on the Bulgarian Stock Exchange and has a market capitalisation of about €230mn. It has production and recycling plants in Bulgaria, Romania and Serbia. In 2016, Monbat reported a consolidated Ebitda of €23mn on consolidated sales revenue of €135mn.

GAIA Akkumulatorenwerke GmbH is one of the leading German lithium ion technology companies, focusing on large format cells and batteries. Established in 1996, the company launched cell and battery manufacturing in 2004. Some of the applications include the first lithium ion starter battery for Porsche, batteries for the prototypes of a hybrid electric vehicle developed by a German car company, as well as batteries for hybrid trucks and buses for European and American customers. In 2009, NASA and Russia’s space agency approved the company’s cells as fit for use in space. Gaia also makes cells for marine applications. Investments in product development and manufacturing capacity have exceeded €60mn since 1996.

EAS Germany GmbH was created in 2011 as a joint venture between Gaia and Enersys/Hawker GmbH. The company specialises in the development and production of cells for hybrid electric drive trains, as well as heavy duty industrial transportation equipment and defence applications.

“Monbat brings the financial stability and ability to investment in state-of-the-art manufacturing that EAS needs to become competitive whilst increasing product quality and production capacity. The team at Nordhausen has over twenty years of manufacturing experience in large-format lithium ion cells which is unparalleled in Europe," said the designated managing director of EAS Batteries GmbH, Michael Deutmeyer.

"Monbat has a lot of experience working in highly commoditised markets as well as in mass production of high quality lead acid batteries. Combining these two skill sets is an ideal basis for executing the new business development plan. The EAS team is immensely grateful for this new chance as well as the trust shown in its capabilities and is highly motivated to convert the new investments into commercial success.”