In a strategic move, BorgWarner has confirmed its acquisition of the Electric Hybrid Systems (EHS) business segment from Eldor Corporation, set to enhance its electric product offering and position it as a major player in the electric mobility solutions market.
What’s Happening
BorgWarner Inc. and Eldor Corporation S.p.A. have made public their Share Purchase Agreement, whereby BorgWarner will acquire the Electric Hybrid Systems (EHS) segment of Eldor. The transaction, amounting to €75 million at closure with a potential additional sum dependent on an earnout, is expected to finalize in the third quarter of 2023.
Why It Matters
This strategic acquisition comes as part of BorgWarner’s effort to bolster its electric product portfolio. Eldor’s EHS segment, based in Italy, includes on-board chargers (OBCs), DC/DC converters, and integrated high voltage boxes. These offerings align with BorgWarner’s existing product suite, promising to expand its capabilities in creating compact, efficient 400V and 800V on-board chargers.
Key Points
The move also allows BorgWarner to integrate innovative and cost-effective high-frequency DC/DC converter technology into its portfolio. BorgWarner anticipates Eldor’s EHS business will contribute to around €25 million of revenue for the full year 2023. According to its Charging Forward 2027 targets, BorgWarner projects revenues to reach approximately €250 million by 2027.
Bottom Line
BorgWarner’s acquisition of Eldor’s EHS business not only fortifies its electric product portfolio but also elevates its stature in the global e-mobility solutions space. The integration of Eldor’s technology expands BorgWarner’s reach into high-voltage power electronics, as emphasized by BorgWarner’s President and CEO, Frédéric Lissalde. “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,” he stated. This venture signifies BorgWarner’s commitment to its Charging Forward M&A strategy and promises to foster Eldor’s EHS team’s professional and managerial growth on a global scale, as acknowledged by Pasquale Forte, President of Eldor Corporation.
