BorgWarner is to purchase approximately a 63% holding in German-based Beru AG from the Carlyle Group and family shareholders for €59 per share or €372 million (about $US476 million).
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The company also plans a voluntary public tender offer in Germany for all of Beru’s remaining outstanding stock for a cash amount equal to €67.50 per share.
BorgWarner chairman and CEO Timothy Manganello said: “This strategic acquisition will significantly enhance our technology leadership in diesel engines, and strengthens our engine electronic control capabilities and sensor expertise at a critical point in the global automotive sector.”
Headquartered in Ludwigsburg, Beru is a system supplier of diesel cold start technology, ignition technology, electronics and sensors.For the year ended June 30, its net income was €37.2 million on sales of €371 million.
Manganello said BorgWarner plans to run Beru as a stand-alone business.
