Clarios International IPO: Everything you need to know about Clarios

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.

Tech (1)

Clarios International IPO: When will Clarios go public?

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.

Want to trade IPOs? Get started with City Index.

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.

You can trade stocks with City Index with spreads from 0.1%. Follow these easy steps to start trading opportunities.

  1. Open a City Index account, or log in if you’re already a customer
  2. Search for the company you want to trade in our award-winning platform
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade

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

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.