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Johnson Controls in talks to buy EnerSys

Johnson Controls Inc, a auto parts maker, is in talks to acquire EnerSys, an industrial battery maker. Johnson Controls has been working to exit its automotive seating and interiors business to focus on its higher margin producing efficiency and automotive battery operations. EnerSys had a market value of $2.73 billion on Monday’s close.

David Whiston, a Morningstar Inc. analyst was surprised Johnson Controls would consider a transaction this big while still in the process of spinning off its automotive unit. According to Whiston the deal would expand Johnson’s battery business beyond automotive batteries and aftermarket automotive batteries. He said, “It’s not that much of a stretch strategically speaking.”