BorgWarner Inc. plans to acquire an Italy-based manufacturer of electric vehicle charging components in a deal valued at about $80 million that would build up the electric portfolio of the automotive supplier.
BorgWarner entered a share purchase agreement with Eldor Corp. that would result in the acquisition of its electric hybrid systems segment, the supplier said Monday in a statement.
The deal improves BorgWarner’s capability in producing 400V and 800V on-board chargers compatible with various regional electric grid variations, while also bringing high-frequency DC/DC converter technology to its offerings. On-board chargers convert AC power from sources such as home plug outlets into DC power that can charge EV battery packs.
The acquisition target is expected to generate about $27 million in revenue this year, and BorgWarner expects to grow sales to $273 million by 2027.
“Eldor’s technologies are a great complement to BorgWarner’s ePropulsion portfolio, particularly as it relates to expanding in high-voltage power electronics beyond the inverter,” BorgWarner CEO Frédéric Lissalde said in the statement.
The deal is expected to close later this year and is subject to closing conditions.
As BorgWarner grows its portfolio of e-products, it is targeting the spinoff of its fuel parts and aftermarket business, renamed Phinia, to be done by July 3.
Eldor’s electric hybrid systems segment is made up of about 300 employees, including 100 engineers, across two R&D plants in Italy and a manufacturing plant in Turkey. The company has spent nearly $140 million in R&D over the last five years.
“BorgWarner represents the best opportunity for the Eldor EHS team to grow further from both a professional and managerial standpoint at a global scale,” Eldor President Pasquale Forte said in the release.
