BorgWarner’s global capabilities across quality, engineering, supply chain, manufacturing and sales are expected to be completed in the first quarter of 2023 by adding a China presence to complement the existing BorgWarner European and North American charging footprints, supporting continued expansion in the DC fast charging market.
AUBURN HILLS, Mich., Sept. 20, 2022 /PRNewswire/ — BorgWarner Inc. (NYSE: BWA) and Hubei Surpass Sun Electric (SSE) announced today that they have entered into an equity transfer agreement under which BorgWarner has agreed to acquire SSE’s Electric Vehicle Solutions, Smart Grid and Smart Energy businesses. The transaction has an enterprise value of up to RMB 410 million, of which approximately RMB 267 million will be distributed upon or shortly after closing. Up to RMB 143 million may be paid in the form of contingent payments within approximately two years after closing.
Headquartered in Xiangyang, Hubei Province, China, SSE’s electrification business provides patented electric vehicle charging solutions to customers in China and more than 70 other countries. SSE has delivered over 50,000 charging points and led the engineering, procurement and construction (EPC) of over 250 charging station sites. SSE’s charging and electrification capabilities in China are expected to complement BorgWarner’s existing capabilities in Europe and North America. SSE’s 2022 revenue for electrification business is expected to be approximately RMB 180 million.
The transaction is subject to the satisfaction of customary closing conditions and SSE shareholder approval. Completion is expected in the first quarter of 2023
“This transaction makes good business sense as we continue to strengthen our fast-charging capabilities globally,” said Frederik Liesald, BorgWarner’s president and CEO. “SSE will bring enhanced offerings while supporting Charging Forward, our strategy to accelerate our growth in electrification. We look forward to welcoming their talented team to BorgWarner.”
For more than 130 years, BorgWarner has been a transformative global product leader that has brought successful mobility innovations to market. Today, we’re accelerating the world’s transition to e-mobility — to help build a cleaner, healthier, safer future for all.
This press release may contain forward-looking statements contemplated by the Private Securities Litigation Reform Act of 1995 that are based on management’s current views, expectations, estimates and assumptions. Words such as “anticipates,” “believes,” “continues,” “may,” “plans,” “impact,” “estimates,” “estimates,” “anticipates,” “anticipates,” “goals, ” “direct,” “initiate,” “intend,” “may,” “view,” “plan,” “potential,” “forecast,” “project,” “pursue,” “pursue,” “should,” The words “goal,” “when,” “will,” “would,” and variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, all statements, other than statements of historical fact mentioned or incorporated by reference in this press release, that we expect or anticipate will occur or may occur in the future, relate to our financial position, business strategy and steps taken to implement that strategy, including changes in operations, competitive strength. , goals, expansion and growth of our business and operations, plans, references to future success and other similar matters are forward-looking statements. All forward-looking statements are based on assumptions and analyzes made by us in light of our experience and our understanding of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company’s actual results may differ materially from those expressed, projected or implied in or by forward-looking statements.
You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, which could cause actual results to differ materially from those expressed, implied or implied by or in the forward-looking statements. These risks and uncertainties include, among others: supply disruptions that affect us or our customers, such as the current shortage of semiconductor chips that has affected original equipment manufacturer (“OEM”) customers and their suppliers, including us; product availability and pricing; competitive challenges from existing and new competitors, including OEM customers; challenges associated with rapidly changing technologies, particularly related to electric vehicles, and our ability to innovate in response; uncertainties regarding the extent and duration of the impact of factors related to the COVID-19 pandemic, including additional production disruptions; difficulty in predicting demand for electric vehicles and our electric vehicle revenue growth; potential disruption to the world economy due to Russian aggression in Ukraine; failure to realize the expected benefits of these or other acquisitions on a timely basis; failure to promptly and effectively integrate these or other acquired businesses; Ability to identify targets and complete acquisitions on acceptable terms; the potential for unknown or unrealized liabilities related to the acquired business; Uncertainty in the global economic environment and the possibility of a recessionary situation in the regional economy; and other risks are set forth in our filings with the Securities and Exchange Commission, including Item 1A, “Risk Factors,” in our most recently filed Quarterly Report on Form 10-K and/or Form 10-Q. We undertake no obligation to publicly update or announce any updates or revisions to the forward-looking statements in this press release to reflect any changes in our expectations or any changes in events, conditions, circumstances or assumptions underlying the statements. .