8 Jan 2002 – Invensys plc announced Monday the sale of its Energy Storage Group (“ESG”) to EnerSys, Inc. (“EnerSys”) for $505m cash. Invensys will. In addition, retain rights to a 28 per cent equity stake in the enlarged company.

EnerSys, an industrial batteries supplier, is a private company controlled by Morgan Stanley Capital Partners IV, L.P. (“MSCP”). The transaction incorporates an agreement governing the ongoing supply of batteries by the enlarged EnerSys to Invensys.

The deal will create the world’s largest industrial battery company and will help reduce the debt burden of the UK-based global automation and controls Group.

Rick Haythornthwaite, CEO of Invensys said, “This significant transaction continues the Board’s focus on reducing the level of indebtedness of Invensys through the disposal of non-core assets. The warrants give our shareholders the opportunity to benefit from the value creation that the enlarged EnerSys has the potential to achieve. We are pleased with the terms of this transaction, which has been achieved in a challenging environment for corporate transactions and many of the sectors that ESG supplies.”

John D. Craig, CEO of EnerSys, said, “This acquisition significantly enhances the strategic positioning and scale of EnerSys. The enlarged EnerSys, combining the US strength of EnerSys and the European based ESG, will result in the world’s largest industrial battery company”.

ESG is expected, for the period ending 31 March 2002, to achieve sales of approximately $600m and profits before restructuring, interest and tax of around $60m.

Invensys said the cash proceeds would be used to reduce debt.

Completion is subject to regulatory approval and the receipt of financing by EnerSys, and is currently expected to be in March 2002.