READING, PA — EnerSys (NYSE: ENS) has agreed to acquire battery manufacturer Ultralife Corp. (NASDAQ: ULBI) for approximately $320 million, expanding its defense power business and U.S. manufacturing capabilities as demand grows for specialized batteries used in drones, counter-drone systems and military equipment.
The Reading-based company will pay $16 per share in cash, representing a 166% premium to Ultralife’s unaffected closing stock price on Oct. 26, 2026. The transaction is expected to close in the first quarter of 2027, subject to regulatory approvals and other customary conditions.
EnerSys expects the acquisition to generate $15 million to $20 million in annual cost savings within 18 months, primarily through operational efficiencies from combining the businesses.
The deal would expand EnerSys’ position in the defense battery market, adding manufacturing capacity, specialized battery technologies and established customer relationships with military and government organizations.
Ultralife, headquartered in Newark, New York, manufactures rechargeable and non-rechargeable batteries, battery systems and accessories used in military communications and other specialized applications.
The company generated $191 million in revenue during fiscal 2025 and employs more than 700 people across operations in the United States, Canada, United Kingdom and China.
For EnerSys, the acquisition provides additional manufacturing infrastructure and technical capabilities to support production of batteries used in munitions, portable military power systems, drones, counter-drone equipment and autonomous platforms.
The combination would also expand production capacity for EnerSys’ proprietary liquid reserve battery technology, using Ultralife facilities with existing security and environmental permits.
“This acquisition is a compelling strategic fit for EnerSys and directly advances our strategy to build a broader, more differentiated defense power platform,” said Shawn O’Connell, president and chief executive officer of EnerSys.
The acquisition also broadens EnerSys’ portfolio of batteries designed to meet Foreign Entity of Concern, or FEOC, compliance requirements, an important consideration for defense customers seeking products that satisfy applicable sourcing restrictions.
Ultralife’s battery technologies offer characteristics suited to military applications, including high energy density, extended shelf life, low self-discharge and performance in cold environments.
Mark Matthews, EnerSys’ chief technology officer and president of Precision Power Solutions, said Ultralife’s intellectual property and manufacturing capabilities complement the company’s existing battery technologies.
“Ultralife complements our multi-chemistry expertise and our liquid reserve technologies with an impressive patent portfolio and strong, longstanding customer relationships,” Matthews said.
Beyond the anticipated cost savings, EnerSys expects the acquisition to increase adjusted diluted earnings per share within approximately 18 months after closing, excluding transaction and integration expenses and other nonrecurring items.
The transaction will be financed entirely through cash on hand.
Both companies’ boards of directors unanimously approved the agreement. EnerSys will conduct the acquisition through a subsidiary that will launch a tender offer for all outstanding Ultralife common shares at $16 each.
Completion requires shareholders to tender at least a majority of Ultralife’s outstanding shares, along with receipt of applicable regulatory approvals.
Ultralife President and Chief Executive Officer Michael Manna said the transaction would provide shareholders with a cash payment while giving the business access to EnerSys’ larger operational resources.
“This transaction is a testament to the hard work and dedication of our entire organization, and now offers even greater opportunities for our valued employees,” Manna said.
The acquisition follows EnerSys’ previous investments in specialized power technologies and reflects its strategy of expanding into defense applications that require advanced battery performance and domestic manufacturing capabilities.
XMS Capital Partners LLC is serving as EnerSys’ financial adviser, while Reed Smith LLP is providing legal counsel for the transaction.
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