- Complements and strengthens BorgWarner's electric product
portfolio
- Closing expected in third quarter 2023
AUBURN HILLS, Mich. ,
June 19,
2023 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) and
Eldor Corporation S.p.A. today announced that they have entered
into a Share Purchase Agreement under which BorgWarner has agreed
to acquire the Electric Hybrid Systems (EHS) business segment of
Eldor for €75 million at closing with a potential additional amount
due subject to an earnout.
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Headquartered in Italy, Eldor's
EHS segment includes on-board chargers (OBCs), DC/DC converters,
and integrated high voltage boxes, all of which are expected to
complement BorgWarner's existing product portfolio. The acquisition
is expected to enhance BorgWarner's capabilities in engineering
compact and efficient 400V and 800V on-board chargers that are
compatible with the variety of regional grid configurations found
globally while also bringing innovative and cost-effective
high-frequency DC/DC converter technology to the portfolio.
BorgWarner expects that Eldor's EHS business will generate €25
million of revenue for the full year 2023. Relative to its
Charging Forward 2027 targets, BorgWarner expects that
revenues will be approximately €250 million in 2027.
The transaction is subject to satisfaction of closing conditions
and is expected to close in the third quarter of 2023.
"Eldor's technologies are a great complement to BorgWarner's
ePropulsion portfolio, particularly as it relates to expanding in
high-voltage power electronics beyond the inverter," said Frédéric
Lissalde, President and CEO of BorgWarner. "As we continue with our
Charging Forward M&A strategy, we look forward to
welcoming Eldor's talented team to BorgWarner later this year."
"BorgWarner represents the best opportunity for the Eldor EHS team
to grow further from both a professional and managerial standpoint
at a global scale," said Pasquale
Forte, President of Eldor Corporation. "I am proud that the
value we have built together so far has been well recognized and I
thank them for the passion, dedication, and skills they have
demonstrated over the years."
About BorgWarner
For more than 130 years, BorgWarner
has been a transformative global product leader bringing successful
mobility innovation to market. Today, we're accelerating the
world's transition to eMobility — to help build a cleaner,
healthier, safer future for all.
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You should not place undue reliance on these forward-looking
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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
supply disruptions impacting us or our customers, such as the
current shortage of semiconductor chips that has impacted original
equipment manufacturer ("OEM") customers and their suppliers,
including us; commodity availability and pricing, and an inability
to achieve expected levels of recoverability in commercial
negotiations with customers concerning these costs; competitive
challenges from existing and new competitors including OEM
customers; the challenges associated with rapidly-changing
technologies, particularly as relates to electric vehicles, and our
ability to innovate in response; uncertainties regarding the extent
and duration of impacts of matters associated with the
COVID-19/coronavirus pandemic, including additional production
disruptions; the difficulty in forecasting demand for electric
vehicles and our electric vehicles revenue growth; potential
disruptions in the global economy caused by Russia's invasion of Ukraine; the ability to identify targets and
consummate acquisitions on acceptable terms; failure to realize the
expected benefits of acquisitions on a timely basis; our ability to
effect the intended tax-free spin-off of our Fuel Systems and
Aftermarket segments into a separate, publicly traded company on a
timely basis or at all; the potential that uncertainty during the
pendency of the spin-off transaction could affect our financial
performance; the possibility that the spin-off transaction will not
achieve its intended benefits; the failure to promptly and
effectively integrate acquired businesses; the potential for
unknown or inestimable liabilities relating to the acquired
businesses; our dependence on automotive and truck production, both
of which are highly cyclical and subject to disruptions; our
reliance on major OEM customers; fluctuations in interest rates and
foreign currency exchange rates; 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, or governmental
investigations, including related litigation; future changes in
laws and regulations, including, by way of example, taxes and
tariffs, in the countries in which we operate; impacts from any
potential future acquisition or disposition transactions; and the
other risks noted under Item 1A, "Risk Factors" in our most
recently-filed 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