Auburn Hills’ BorgWarner has completed an acquisition that is expected to strengthen its electronics and power electronics products and capabilities, as well as expand its electrified propulsion offerings.
Announced in January, the company has acquired London-based Delphi Technologies and closed on the deal in the second half of the year as expected. At the time of the announcement, the company said Delphi’s enterprise value was at about $3.3 billion, and the agreement was an all-stock transaction. Delphi had a customer technical center in Auburn Hills.
“Through this combination, BorgWarner is even better positioned with a more comprehensive portfolio of industry-leading propulsion products and systems across combustion, hybrid, and electric vehicles,” says Frédéric Lissalde, president and CEO of BorgWarner.
“We expect that the combination will also strengthen our commercial vehicle and aftermarket businesses. We welcome Delphi Technologies’ colleagues around the world to the BorgWarner team and are excited about the opportunities we have together to address market trends towards electrification.
“I am proud of our global workforce, including our integration planning teams, for driving the business forward as we managed through the pandemic and laying a strong foundation for a seamless integration. I have great confidence that we will realize what we believe are significant benefits of this combination for our shareholders, customers, and suppliers.”
The combined company will be led by Lissalde and Kevin Nowlan, CFO of BorgWarner. Its headquarters will be in Auburn Hills.
Delphi brings industry leading power electronics technology and talent and has an established production, supply, and customer base. The combined company will offer customers a suite of power electronics products including high voltage inverters, converters, on-board chargers, and battery management systems, as well as capabilities including software, systems integration, and thermal management.
On top of electronics, Delphi’s breadth of combustion propulsion products complements BorgWarner’s portfolio, which is focused on clean technologies to increase efficiency and performance of modern combustion vehicles. Delphi’s commercial vehicle aftermarket business results in more balance for BorgWarner across light vehicles, commercial vehicles, and the aftermarket.
Delphi Technologies Aftermarket will maintain its brand identity, and BorgWarner will keep Delphi’s contacts for sales and customer service support.
With the close of the transaction, Delphi common stock will no longer be traded on the New York Stock Exchange.