VARTA AG: VARTA AG takes off for the future with VARTA Consumer
VARTA AG, technology and innovation leader in its industry and one of the world's leading suppliers of lithium-ion batteries, especially for wireless premium headsets, completed the acquisition of the VARTA Consumer Batteries business ("VARTA Consumer"), headquartered in Europe, on January 2, 2020. The company was thus setting the course for a successful joint future under the umbrella of the VARTA AG Group. The acquisition of VARTA Consumer, completed on January 2, 2020, puts the business model of the VARTA AG Group on an even broader basis and strengthens the brand image of all VARTA products. In addition to the successful battery business, VARTA Consumer Services provided services for the appliances-sector (including household appliances and pet food) of the former owner Spectrum Brands, which will no longer apply. VARTA AG will continue to focus exclusively on the battery business in the future. As a result of this and other synergy effects, it will be necessary to adjust personnel capacities of the VARTA Consumer business in EMEA by around 220 full-time positions expected by the end of 2020. The respective changes will be conducted in a socially responsible manner and in close consultation with employee representatives and trade unions.
Further strong growth expected in the lithium-ion segment At the same time, the Group is benefitting from the sustained high demand for premium headsets, whose market is growing by approximately 30 per cent annually. VARTA AG has gained unique competitive advantages in this segment and is growing significantly faster than the market. The company is therefore massively expanding its production capacities. As a result of this strong growth, several hundred new jobs will be created in the Group in the near future. As far as possible, they will be filled by VARTA Consumer employees.
Herbert Schein, CEO of the VARTA AG Group, says: "We are proud to have seized this opportunity to bring together what belongs together. With VARTA Consumer, we are strengthening our brand image, expanding our product portfolio and tapping new business potential. The strong growth of our group is particularly in the area of lithium-ion technology. Due to the high demand for VARTA lithium-ion batteries, we are continuing to massively expand our production capacities."
Two segments: "Microbatteries & Solutions" and "Household Batteries" The Consumer Batteries business, together with the energy storage business of the former VARTA AG, will form the new segment "Household Batteries" in the future. Within the VARTA AG Group, the division will focus on the consumer business with its own sales, marketing and production. The administrative functions of VARTA Consumer, such as IT, Finance, Purchasing or Human Resources, will be integrated into the existing infrastructure of the VARTA AG Group. The microbatteries business and the "Power Pack Solutions" division will be combined in the "Microbatteries & Solutions" segment. This also includes the lithium-ion battery business. The focus of "Microbatteries & Solutions" will be on the OEM business in the future. The expected strong growth in lithium-ion batteries will significantly increase the workforce in the new "Microbatteries & Solutions" segment.
About VARTA AG
VARTA AG produces and markets a comprehensive battery portfolio, ranging from microbatteries, household batteries, energy storage systems to customer-specific battery solutions for a wide range of applications, and, as a technology leader, sets industry standards in key areas. As the parent company of the Group, it operates in the business segments "Microbatteries & Solutions" and "Household Batteries". The "Microbatteries & Solutions" segment focuses on the OEM business for microbatteries as well as on the lithium-ion battery pack business. Through intensive research and development, VARTA sets global standards in the microbattery sector and is a recognized innovation leader in the important growth markets of lithium-ion technology and primary hearing aid batteries. The "Household Batteries" segment comprises the battery business for end customers, including household batteries, rechargeable batteries, chargers, portable power (power banks) and lights as well as energy storage devices. The VARTA AG Group currently employs almost 4,000 people. With five production and manufacturing facilities in Europe and Asia, and distribution centers in Asia, Europe and the USA, VARTA AG's operating subsidiaries are currently active in over 75 countries worldwide.
09.01.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: VARTA AG VARTA-Platz 1 73479 Ellwangen
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