AUBURN HILLS, Mich. — BorgWarner has signed an agreement to acquire the Traction Systems division of Haldex Group, a leading provider of innovative products for the global vehicle industry headquartered in Stockholm, Sweden.
"This acquisition supports our continuing strategy to be a global technology leader in providing powertrain solutions," said Timothy Manganello, Chairman and CEO, BorgWarner. "With the acquisition of Haldex Traction Systems, BorgWarner has added a strong and well-respected brand of all-wheel drive products that will complement our current portfolio as well as our customer and geographic mix."
The move is expected to accelerate BorgWarner’s growth in the global all-wheel drive (AWD) market as it continues to shift toward front-wheel drive (FWD) based vehicles. The company says this acquisition will add industry leading FWD/AWD technologies, with a strong European customer base, to BorgWarner’s existing portfolio of front and rear-wheel drive based products. The deal also enables BorgWarner to provide global customers a broader range of all-wheel drive solutions to meet their vehicle needs.
BorgWarner is acquiring the business for approximately $205 million and the deal is expected to close in the first quarter of 2011.
