John Deere to acquire majority ownership in Kreisel Electric, Inc.
MOLINE, Ill. (KWQC) - Deere & Company announced Tuesday it is set to acquire majority ownership in Kreisel Electric, Inc. after having signed a definitive agreement.
Kreisel Electric, Inc. is a battery technology provider based in Rainbach im Mühlkreis, Austria that develops high-density, high-durability electric battery modules and packs, Deere & Co. said in a media release. Additionally, Kreisel has developed a charging infrastructure platform (CHIMERO) that utilizes this patented battery technology.
John Deere said it sees demand growing for batteries as a sole- or hybrid-propulsion system for off-highway 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.
Since 2014, Kreisel has been a leading innovator focused on the development of immersion-cooled electric battery modules and packs for high-performance and off-highway applications, Deere said. The company 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.
Deere said it 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.
“Kreisel’s battery technology can be applied across the broad portfolio of Deere products, and Kreisel’s in-market experience will benefit Deere as we ramp up our battery-electric vehicle portfolio. Deere will provide the expertise, global footprint, and funding to enable Kreisel to continue its fast growth in core markets,” said Pierre Guyot, Senior Vice President, John Deere Power Systems. “This is an opportunity to invest in a company with unique technology that’s designed for the demanding conditions where Deere customers work.”
The 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, Deere & Co. said.
“Furthermore, building an electrified portfolio is key to John Deere’s sustainability goal of pursuing new technologies that reduce the environmental impact of new products and work toward zero emissions propulsion systems on equipment, while increasing our customers’ efficiency and productivity,” Guyot said.
Kreisel Electric will retain its employees, brand name, and trademark, and continue to operate from its current location in Austria to serve its growing customer base, Deere said. The company was founded by brothers Johann, Markus, and Philipp Kreisel, and has approximately 160 full-time employees.
In a joint statement, Johann, Markus, and Philipp Kreisel said the Kreisel team looks forward to expanding its base business, leveraging the Deere channel to accelerate adoption of battery-electric vehicles and charging stations, and working with Deere’s vehicle design teams on product advancements.
The transaction requires final regulatory approval in Austria, with closing expected to take place in approximately 60 days, Deere & Co. said. Financial details are not being disclosed.
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