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

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 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