BorgWarner seeks to buy Haldex AB’s traction unit for $205 million cash

Article by Christian A., on December 19, 2010

As part of efforts to expand into all-wheel-drive technology, BorgWarner Inc. plans to buy Haldex AB's traction unit for about $205 million in cash.

BorgWarner, the world's biggest maker of automatic-transmission parts, said that with this acquisition, it will get access to front-wheel and all-wheel drive technologies, gain a strong European customer base, and add to its current lineup of front and rear-wheel drive based products.

In a statement, BorgWarner CEO Timothy M. Manganello said that Haldex Traction Systems, “which is a strong and well-respected brand of all-wheel drive products,” will compliment its current portfolio as well as its customer and geographic mix.

It’s expected that the deal will close in the first quarter of 2011, subject to standard regulatory approvals. Haldex’s traction unit customers include Volkswagen AG, General Motors Co. and the sport-utility vehicle unit of Tata Motors Ltd.'s Jaguar Land Rover division.

The traction business’ 9-month operating profit totaled 87 million kronor on sales of 909 million kronor. Haldex released a statement, revealing that the 1.43 billion-krona ($211 million) cash transaction will result in a 1.1 billion-krona capital gain.

CEO Joakim Olsson said that proceeds from the sale will be reinvested into Haldex's two remaining divisions and will be set aside for projects that may include acquisitions or may be used to pay investors.

Topics: borgwarner

If you liked the article, share on:

Comments

Recommended

In 2014, Jaguar Land Rover’s Special Vehicle Operations revealed the F-Type Project 7. At that time, it was said to be the fastest accelerating road car carrying a 5.0-liter Supercharged...
by - May 29, 2017
There is an ongoing rumor going around the automotive community, and it’s aimed at BMW. The rumor? The German marque has reportedly axed the i5 Electric vehicle concept. These supposed...
by - May 29, 2017
Volkswagen's yearly Worthersee affair that happens in Austria is considered a hotbed for all types of cars from the German company's long and renowned history. Most of the gathering features...
by - May 29, 2017
Behold, the Rolls-Royce Sweptail! The Sweptail is probably the biggest two-seater car that has ever been built. It may look odd at first glance, and you may not be fond...
by - May 29, 2017
BMW just keeps on getting bigger and bigger, in terms of their lineup I mean. Just after unveiling the 8 Series Concept, they are now teasing us with an M8...
by - May 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries