EnerSys Announces Settlement of Altergy Disputes
Settlement Resolves Legal Challenges relating to May 2014 Arbitration Award
EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, announced today that its wholly-owned subsidiary, EnerSys Delaware Inc. (“EDI”), has entered into a binding term sheet with Altergy Systems (“Altergy”) that resolves the outstanding legal challenges related to the May 2014 arbitrational panel award issued in favor of Altergy.
Under the terms of the term sheet, EDI will pay Altergy $40.0 million in settlement of the May 2014 arbitration panel award, and Altergy will pay EDI $2.0 million to repurchase EDI’s entire interest in Altergy. The parties anticipate executing agreements documents these transactions no later than September 12, 2014. Within ten days of receipt of the foregoing payments, the parties will move to end all ongoing litigation between them in connection with the arbitration panel award.
EnerSys intends to fund the net amount to be paid by EDI from [immediately available cash on hand and funds available under its existing credit facilities]. Based upon the binding term sheet, EnerSys anticipates reversing approximately $.25 per diluted share for the after-tax impact from the legal proceedings charge in the second quarter of fiscal 2014.
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