BorgWarner announced that it has signed an agreement to acquire the Traction Systems division of Haldex Group. “This acquisition supports our continuing strategy to be a global technology leader in providing powertrain solutions,” says Timothy M. Manganello, chairman and chief executive officer of BorgWarner. ”With the acquisition of Haldex Traction Systems, BorgWarner has added a strong and well-respected brand of all-wheel drive products that will complement our current portfolio as well as our customer and geographic mix.”
The move is expected to accelerate BorgWarner’s growth in the global all-wheel drive (AWD) market as it continues to shift toward front-wheel drive (FWD) based vehicles. BorgWarner says the acquisition will add industry-leading FWD/AWD technologies, with a strong European customer base, to BorgWarner’s existing portfolio of front and rear-wheel drive based products, enabling it to provide global customers a broader range of all-wheel drive solutions to meet their vehicle needs.
The purchase price is about $205 million and represents less than one times estimated 2011 sales. The deal is expected to close in the first quarter of 2011 subject to standard regulatory approvals.