After over 130 years in business, Johnson Controls, the world’s largest manufacturer of automotive batteries is being relaunched as Clarios.
The rebranding comes six months after being bought by Brookfield Business Partners, an asset manager that focuses on real estate, infrastructure, renewable power and private equity.
In a letter to shareholders, Brookfield explains the many reasons behind the acquisition of Johnson Controls. Clarios is a technology leader in a growing end market supplying one third of the world’s automotive batteries and over 75% of Clarios’ sales are driven by a stable demand that has shown decades of consistent growth throughout all market cycles.
“Industry forecasts suggest the total number of cars on the road will grow by 30% globally over the next 10 years. Clarios will provide batteries to the manufacturers of these cars, as well as replacement batteries for decades to come,” the letter states. The company acknowledge that the demands on auto batteries will continue to increases as cars become increasingly complexity.
Brookfields has $350 billion in assets in 30 countries around the world, and it is ranked #165 on Forbes largest public companies 2018.
This is not the only automotive-related deal Brookfield Business Partners has completed in recent months. The company also purchased Philadelphia-based remanufacturer Cardone Industries.