US automotive component supplier BorgWarner plans to acquire Italian electric vehicle charging component manufacturer Eldor in a deal valued at approximately $80 million, expanding BorgWarner's portfolio of electric products. BorgWarner announced on June 19th that it has reached a stock purchase agreement with Eldor to acquire its electric hybrid system business.
This transaction enhances BorgWarner's capabilities in producing 400-volt and 800-volt onboard charging systems, making them compatible with different regional power grids, and also brings high-frequency DC/DC converter technology to its product offerings. Onboard charging systems convert alternating current (AC) from sources such as home outlets into direct current (DC) for charging electric vehicle battery packs.
BorgWarner expects this acquisition to generate approximately $27 million in revenue for the company this year, with sales expected to increase to $273 million by 2027. The transaction is anticipated to be completed later this year, subject to customary closing conditions.
BorgWarner's acquisition of Italian electric vehicle charging company Eldor Image source: Eldor
Currently, BorgWarner is expanding its electronic product portfolio and aims to complete the spin-off of its combustion business and aftermarket business, to be renamed as Phinia, by July 3rd.
Eldor's electric hybrid system division consists of approximately 300 employees, including 100 engineers, who are spread across two research and development facilities in Italy and one manufacturing facility in Turkey. Over the past five years, the company has invested nearly $140 million in research and development.
Pasquale Forte, President of Eldor, stated, "BorgWarner represents the best opportunity for the Eldor EHS team to further develop in terms of specialization and management on a global scale."
