BorgWarner and Eldor Corporation have agreed to a deal in which BorgWarner will acquire Eldor’s Electric Hybrid Systems (EHS) business segment for Euro 75 million at closing, with the potential for an additional amount to be paid based on future performance.
Eldor’s EHS segment includes onboard chargers (OBCs), DC/DC converters, and integrated high-voltage boxes, all of which are expected to complement BorgWarner’s existing product portfolio. The acquisition is expected to enhance BorgWarner’s capabilities in engineering compact and efficient 400V and 800V onboard chargers compatible with the variety of regional grid configurations found globally while bringing innovative and cost-effective high-frequency DC/DC converter technology to the portfolio. BorgWarner expects Eldor’s EHS business to generate Euro 25 million of revenue for 2023. Relative to its Charging Forward 2027 targets, BorgWarner expects that revenues will be approximately Euro 250 million in 2027.
The transaction is subject to satisfaction of closing conditions and is expected to close in the third quarter of 2023.
“Eldor’s technologies are a great complement to BorgWarner’s ePropulsion portfolio, particularly as it relates to expanding in high-voltage power electronics beyond the inverter,” said Frédéric Lissalde, President and CEO of BorgWarner. “As we continue with our Charging Forward M&A strategy, we look forward to welcoming Eldor’s talented team to BorgWarner later this year.”
“BorgWarner represents the best opportunity for the Eldor EHS team to grow further from both a professional and managerial standpoint at a global scale,” said Pasquale Forte, President of Eldor Corporation. “I am proud that the value we have built together so far has been well recognized and I thank them for the passion, dedication, and skills they have demonstrated over the years,” he added.
