Houlihan Lokey Advises Kreisel Electric
Houlihan Lokey is pleased to announce that John Deere (NYSE:DE) has entered into an agreement to acquire a majority ownership in Kreisel Electric (Kreisel), an Austrian battery technology leader. The transaction was closed on 2 February 2022.
Kreisel is an ESG-driven pioneer of a leading battery technology platform that pushes e-mobility to new levels through the development of high-density, high-durability electric battery modules and packs. Additionally, Kreisel has developed a charging infrastructure platform (CHIMERO) that utilizes this patented battery technology.
Since its foundation in 2014 by the brothers Johann, Markus and Philipp Kreisel, the company has been a leading innovator focused on the development of immersion-cooled electric battery modules and packs for high-performance and off-highway applications. Kreisel has a differentiated battery technology and battery-buffered charging infrastructure offering, and currently serves a global customer base across multiple end markets, including commercial vehicles, off-highway vehicles, marine, e-motorsports, and other high-performance applications.
John Deere (a brand of Deere & Company) is a listed US-based manufacturer of agricultural, construction and forestry machinery. With c.70,000 employees globally, Deere generated c.$44bn revenues in FY 2021 and is currently listed at a market capitalization of c.$110bn.
John Deere sees demand growing for batteries as a sole or hybrid propulsion system for vehicles. Products in Deere’s portfolio such as turf equipment, compact utility tractors, small tractors, compact construction, and some road building equipment could rely solely on batteries as a primary power source in the future. Deere intends to continue to invest in and develop technologies to innovate, deliver value to customers, and work towards a future with zero emissions propulsion systems.
This majority investment in Kreisel Electric will allow Deere to optimally integrate vehicle and powertrain designs around high-density battery packs while leveraging Kreisel’s charging technology to build out infrastructure required for customer adoption.
Houlihan Lokey served as exclusive financial advisor to Kreisel Electric and assisted the management, founders and shareholders throughout the transaction, including marketing document and business plan preparation, due diligence process coordination and transaction negotiation. This landmark transaction in this growing sector represents another successful sellside for Houlihan Lokey’s autotech team.