BorgWarner (BW) and Hubei Surpass Sun Electric (SSE) have entered into an equity transfer agreement under which BW agreed to acquire the electric vehicle solution, smart grid and smart energy businesses of SSE.

The transaction is valued up to RMB410m of which RMB267m would be delivered at or soon after closing. Up to RMB143m could be paid in the form of contingent payments over approximately two years following the closing.

Headquartered in Xiangyang, Hubei province, China, SSE’s electrification business supplies patented electric vehicle charging to customers in China and 70 other countries. SSE has established over 50,000 charging points and has led the engineering, procurement, and construction (EPC) of 250 charging station sites.

SSE’s charging and electrification capabilities in China are expected to complement BorgWarner’s existing capability in Europe and North America. SSE’s 2022 revenues for the electrification business are expected to be approximately RMB180m.

The transaction is subject to usual closing conditions and SSE shareholder approval and closing is expected in first quarter 2023.

“This transaction makes good business sense as we continue to bolster our fast charging capabilities globally,” said Frederic Lissalde, president and CEO of BorgWarner.