AUBURN HILLS, Mich.,
Jan. 4, 2019 /PRNewswire/
-- BorgWarner has agreed to sell its thermostat business to
Arlington Industries Group Ltd. The sale includes
manufacturing facilities in Oberboihingen, Germany and Piracicaba, Brazil.
Completion of the transaction is expected in the first quarter of
2019, subject to the satisfaction of customary closing
conditions.
The thermostat business came with the exhaust gas recirculation
valve business acquired from Gustav Wahler GmbH & Co. KG in
2014. While the thermostat product technology has been
continuously developed to meet market demands, it is not core to
BorgWarner's strong focus on propulsion systems for combustion,
hybrid and electric vehicles. This transaction is limited to
the thermostat business only and does not affect other BorgWarner
products or technologies.
Full year sales of the thermostat business for 2018 are expected
to be approximately €110 million. The purchase price of the
transaction is approximately €24 million, subject to customary
adjustments. The company will incur a book loss on the sale
of approximately $20-30 million.
About BorgWarner
BorgWarner Inc. (NYSE: BWA) is a global product leader in clean
and efficient technology solutions for combustion, hybrid and
electric vehicles. With manufacturing and technical facilities in
66 locations in 18 countries, the company employs approximately
29,000 worldwide. For more information, please visit
borgwarner.com.
Statements in this press release may contain forward-looking
statements as contemplated by the 1995 Private Securities
Litigation Reform Act that are based on management's current
outlook, expectations, estimates and projections. Words such as
"anticipates," "believes," "continues," "could," "designed,"
"effect," "estimates," "evaluates," "expects," "forecasts," "goal,"
"initiative," "intends," "outlook," "plans," "potential,"
"project," "pursue," "seek," "should," "target," "when," "would,"
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. These risks and uncertainties, among others, include:
uncertainties associated with matters impacting transaction timing
and costs, our dependence on automotive and truck production, both
of which are highly cyclical; our reliance on major OEM customers;
commodities availability and pricing; supply disruptions;
fluctuations in interest rates and foreign currency exchange rates;
availability of credit; our dependence on key management; our
dependence on information systems; the uncertainty of the global
economic environment; the outcome of existing or any future legal
proceedings, including litigation with respect to various claims;
and future changes in laws and regulations, including by way of
example, tariffs, in the countries in which we operate, as well as
other risks noted in reports that we file with the Securities and
Exchange Commission, including the Risk Factors identified in our
most recently filed Annual Report on Form 10-K/A. We do not
undertake any obligation to update or announce publicly any updates
to or revision to any of the forward-looking statements.
View original
content:http://www.prnewswire.com/news-releases/borgwarner-agrees-to-sell-thermostat-business-to-arlington-industries-group-300772829.html
SOURCE BorgWarner