AUBURN HILLS, Mich.,
Jan. 5, 2022 /PRNewswire/
-- BorgWarner Inc. ("BorgWarner") has sold its Water Valley, Mississippi facility to Atar
Capital. The sale is consistent with Project Charging Forward,
BorgWarner's accelerated electrification strategy which the Company
announced in March 2021. Outlined in
this strategy is a target to dispose of $3
billion to $4 billion in
annual revenues from its combustion portfolio by 2025 with
approximately $1 billion of that
targeted to be executed by late 2022.
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The Water Valley sale
encompasses the manufacturing facility and the associated solenoid,
transmission control module and stop/start accumulator system
business located there. Full year sales of the Water Valley business for 2021 are expected to
be approximately $180 million. The
transaction was completed on December 31,
2021. The consideration consisted of $42 million in cash and notes and up to
$30 million in potential earn out
payments. The Company expects to incur a U.S. GAAP loss on the
sale, which is not expected to be material.
About BorgWarner
BorgWarner Inc. (NYSE: BWA) is a
global product leader in delivering innovative and sustainable
mobility solutions for the vehicle market. Building on its original
equipment expertise, BorgWarner also brings market-leading product
and service solutions to the global aftermarket. With manufacturing
and technical facilities in 96 locations in 22 countries, the
company employs approximately 50,000 people worldwide. For more
information, please visit borgwarner.com.
Forward-Looking Statements: 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. In particular, the statements concerning the Company's
divestiture targets are forward-looking statements. All
forward-looking statements are based on assumptions and analyses
made by us in light of our experience and our perception of
historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate
under the circumstances. Forward-looking statements are not
guarantees of performance, and the Company's actual results may
differ materially from those expressed, projected or implied in or
by the forward-looking statements.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
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
the ability to identify appropriate combustion portfolio businesses
for disposition and consummate planned dispositions on acceptable
terms; uncertainties regarding the extent and duration of impacts
of matters associated with the COVID-19/coronavirus pandemic; the
uncertainty of the global economic environment; and the other
risks, including, by way of example, pandemics and
quarantines, noted in reports that we file with the Securities
and Exchange Commission, including Item 1A, "Risk Factors" in our
most recently-filed Annual Report on Form
10-K and/or Quarterly Report on Form 10-Q. We do not
undertake any obligation to update or announce publicly any updates
to or revisions to any of the forward-looking statements in this
press release to reflect any change in our expectations or any
change in events, conditions, circumstances, or assumptions
underlying the statements.
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SOURCE BorgWarner