BorgWarner Inc. announced that it has completed its acquisition of AKASOL AG. The combination of BorgWarner and AKASOL is expected to significantly strengthen the company’s commercial vehicle and industrial electrification capabilities, which positions the company to capitalize on what it believes to be a fast-growing battery systems market.
“We are pleased to complete our acquisition of AKASOL and welcome AKASOL’s talented employees in Germany and the United States to BorgWarner,” said Frédéric Lissalde, president and CEO, BorgWarner. “AKASOL is an excellent strategic fit as BorgWarner seeks to continue to expand its electrification portfolio and capitalize on the profound industry shift toward electrification.”
AKASOL represents ~20 to ~25% of the inorganic sales underlying Project Charging Forward, contributing ~$600 million in expected electric vehicle revenue by 2025. Project Charging Forward was announced in March 2021 and aims to grow the company’s revenue from electric vehicles to ~45% of total revenue by 2030.
BorgWarner says completion of the merger “squeeze-out” was the final step to achieve full control and ownership of AKASOL. At completion of the transaction, the shares of all minority shareholders were automatically transferred to ABBA BidCo AG by operation of law. At the same time, AKASOL AG has been merged into ABBA BidCo AG and AKASOL common stock will cease to be traded on the relevant Stock Exchanges.
Sven Schulz, the former CEO of AKASOL, will continue in a consulting role with BorgWarner through the second quarter of the year.