BorgWarner’s Acquisition of German Firm to Boost EGR Capabilities


tBorgWarner in Auburn Hills will acquire Germany-based Gustav Wahler GmbH and its general partner, Wahler, which together produce exhaust gas recirculation (EGR) valves, tubes, and thermostats. The deal is expected to strengthen BorgWarner’s participation in the rapid adoption of EGR technology.

t“From both a technology and geography standpoint, this acquisition is an excellent strategic fit,” says James Verrier, BorgWarner’s president and CEO. “The acquisition strengthens BorgWarner’s strategic position as a producer of complete EGR systems and creates additional market opportunities in both passenger and commercial vehicle applications.”

tOne version of the evolving technology, called cooled EGR, helps reduce NOx emissions and improves fuel economy in diesel and gasoline-direct injection engines, which are important initiatives for OEMs, BorgWarner officials say. The auto supplier posted 2012 revenue of $7.2 billion and has more than 19,100 employees.

tWith locations in the United States, Germany, Brazil, China, and Slovakia, Wahler employs approximately 1,250 people and supplies customers such as Daimler, Volkswagen, BMW, GM, and John Deere. Its annual sales for 2013 are expected to be approximately $350 million.

tThe deal is expected to close in early 2014.