BorgWarner to acquire Delphi Technologies

The all-stock transaction values Delphi Technologies’ enterprise value at approximately USD 3.3 billion. In fiscal year 2019, BorgWarner and Delphi Technologies estimate that they generated USD 10.17 billion and USD 4.36 billion in net sales, respectively. The acquisition will strengthen BorgWarner’s power electronics products, capabilities and scale and enable the company to maintain flexibility across combustion, hybrid, and electric propulsion (C-H-E). Under the terms of the agreement, approved by both companies’ boards, current BorgWarner stockholders are expected to own approximately 84% of the combined company, while current Delphi Technologies stockholders would own approximately 16%. Once the deal is completed, which is expected in the second half of 2020, the combined company will be led by BorgWarner President and CEO Frédéric Lissalde, and BorgWarner CFO Kevin Nowlan. The company will operate as BorgWarner, with headquarters in Auburn Hills, Michigan. In a press release, Lissalde said, “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. 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.”