BorgWarner is to purchase approximately 63% of the outstanding shares of German-based Beru from its major shareholders, The Carlyle Group and a group of family shareholders, for 59 Euros per share or 372 million Euros ($476 million).
The company also announced that it intends to launch, through one of its German subsidiaries, a voluntary public tender offer for all of Beru’s remaining outstanding stock for an amount in cash equal to 67.50 Euros per share.
Headquartered in Ludwigsburg, Germany, Beru is a supplier of diesel cold start technology, ignition technology, electronics and sensors. On a trailing twelve- month basis ending June 30, 2004, Beru’s net income was 37.2 million Euros on sales of 371 million Euros.
Commenting on the announcement, Timothy M. Manganello, Chairman and CEO of BorgWarner, said that the acquisition would enhance the company’s technology leadership in diesel engines, and strengthen its engine electronic control capabilities and sensor expertise.
The total transaction, assuming purchase of all the remaining outstanding shares of Beru, is valued at 621 million Euros (approximately US $795 million).
Completion of the transaction is subject to regulatory approval.