BorgWarner Agrees to Buy Delphi Technologies
BorgWarner Inc. is acquiring Delphi Technologies PLC in an all-stock transaction that places Delphi Technologies’ enterprise value at approximately $3.3 billion.
The deal is expected to close in the second half of 2020. When the transaction is completed, the combined company will be led by Frédéric Lissalde, BorgWarner’s president and CEO, and Kevin Nowlan, BorgWarner’s CFO, and will operate as BorgWarner. The combined company will be headquartered in Auburn Hills, Mich.
The transaction will create “a leader in electrified propulsion systems that is well-positioned to take advantage of future propulsion migration,” according to a BorgWarner press release.
BorgWarner said the acquisition would strengthen its power electronics products, capabilities and scale. Combining with Delphi Technologies is consistent with BorgWarner’s evolution towards the propulsion market of the future and would enable BorgWarner to maintain flexibility across combustion, hybrid, and electric propulsion (C-H-E).
“This exciting transaction represents the next step in BorgWarner’s balanced propulsion strategy, strengthening our position in electrified propulsion as well as our combustion, commercial vehicle and aftermarket businesses,” said Frédéric Lissalde, President and CEO of BorgWarner. “Delphi Technologies will bring proven leading power electronics technologies, talent and scale that will complement our hybrid and electric vehicle propulsion offerings. As a combined company, we look forward to delivering enhanced solutions to our customers while driving increased value for our stockholders.”
Delphi Technologies CEO Richard Dauch said his company’s portfolio is highly complementary to BorgWarner’s “and together we plan to create a pioneering propulsion technologies company uniquely equipped to serve OEMs and aftermarket customers around the world. BorgWarner’s team shares our focus on addressing today’s and tomorrow’s challenges, and the combination will create exciting opportunities for our employees. We also expect our stockholders will benefit from the opportunity to participate in the future growth and upside potential of the combined company.”
BorgWarner’s preliminary full year 2019 financial results are available on the “Investor Relations” section of the BorgWarner website at http://www.borgwarner.com/investors.
Delphi Technologies’ preliminary full year 2019 financial results are available on the “Investor Relations” section of the Delphi Technologies website at http://ir.delphi.com.
BorgWarner Inc. is a global provider of in clean and efficient technology solutions for combustion, hybrid and electric vehicles. With manufacturing and technical facilities in 67 locations in 19 countries, the company employs approximately 30,000 worldwide. For more information, visit www.borgwarner.com.
About Delphi Technologies
Delphi Technologies is a global provider of propulsion technologies that make vehicles drive cleaner, better and further. It offers solutions for internal combustion engine, hybrid and electric passenger cars and commercial vehicles. With technical centers, manufacturing sites, customer support service centers in 24 countries, the company employs more than 21,000 people around the world. Visit www.delphi.com to learn more.