AUBURN HILLS, Mich.,
Dec. 17, 2010 /PRNewswire-FirstCall/
-- BorgWarner announced today that it has signed an agreement to
acquire the Traction Systems division of Haldex Group, a leading
provider of innovative products for the global vehicle industry
headquartered in Stockholm,
Sweden.
"This acquisition supports our continuing strategy to be a
global technology leader in providing powertrain solutions," said
Timothy M. Manganello, Chairman and
CEO, BorgWarner. "With the acquisition of Haldex Traction
Systems, BorgWarner has added a strong and well-respected brand of
all-wheel drive products that will compliment our current portfolio
as well as our customer and geographic mix."
The move is expected to accelerate BorgWarner's growth in the
global all-wheel drive (AWD) market as it continues to shift toward
front-wheel drive (FWD) based vehicles. The acquisition will
add industry leading FWD/AWD technologies, with a strong European
customer base, to BorgWarner's existing portfolio of front and
rear-wheel drive based products. This enables BorgWarner to
provide global customers a broader range of all-wheel drive
solutions to meet their vehicle needs.
The purchase price is approximately $205
million (1.425 billion SEK)
and represents less than one times estimated 2011 sales. The
deal is expected to close in the first quarter of 2011 subject to
standard regulatory approvals.
Auburn Hills, Michigan-based
BorgWarner Inc. (NYSE: BWA) is a product leader in highly
engineered components and systems for vehicle powertrain
applications worldwide. The company operates manufacturing and
technical facilities in 60 locations in 18
countries. Customers include VW/Audi, Ford, Toyota,
Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler,
Fiat, BMW, Honda, Deere & Company, PSA, and MAN. The Internet
address for BorgWarner is: http://www.borgwarner.com.
Statements contained in this news release may contain
forward-looking statements as contemplated by the 1995 Private
Securities Litigation Reform Act that are based on management's
current expectations, estimates and projections. Words
such as "outlook", "expects," "anticipates," "intends," "plans,"
"believes," "estimates," variations of such words and similar
expressions are intended to identify such forward-looking
statements. Forward-looking statements are subject to
risks and uncertainties, many of which are difficult to predict and
generally beyond our control, that could cause actual results to
differ materially from those expressed, projected or implied in or
by the forward-looking statements. Such risks and
uncertainties include: fluctuations in domestic or foreign vehicle
production, the continued use of outside suppliers, fluctuations in
demand for vehicles containing our products, changes in general
economic conditions, and other risks detailed in our filings with
the Securities and Exchange Commission, including the Risk Factors,
identified in our most recently filed Annual Report on Form
10-K. We do not undertake any obligation to update any
forward-looking statements.
SOURCE BorgWarner Inc.