Pacific Dunlop Ltd., an Australian firm seeking...

Pacific Dunlop Ltd., an Australian firm seeking to expand its worldwide motor vehicle battery business, reached an agreement to purchase a 60% interest in GNB Holdings Inc., the St. Paul, Minn. producer of Champion, High Energy, Action Pack and other branded batteries, for $125 million.

The agreement allows for Melbourne-based Pacific Dunlop to increase its holdings in GNB to 70% during the next three years and gives the firm an option to acquire the remaining 30% in five years.

After Pacific Dunlop merges its Pacific Chloride battery business with GNB, its annual battery sales in North America will total $500 million, according to Leslie Froggatt, chairman of Pacific Dunlop.