BorgWarner has agreed to sell its thermostat business to Arlington Industries Group Ltd. The sale includes manufacturing facilities in Oberboihingen, Germany and Piracicaba, Brazil. Completion of the transaction is expected in the first quarter of 2019, subject to the satisfaction of customary closing conditions.
The thermostat business came with the exhaust gas recirculation valve business acquired from Gustav Wahler GmbH & Co. KG in 2014. While the thermostat product technology has been continuously developed to meet market demands, it is not core to BorgWarner’s strong focus on propulsion systems for combustion, hybrid and electric vehicles. The transaction is limited to the thermostat business only and does not affect other BorgWarner products or technologies, the company said.
Full year sales of the thermostat business for 2018 are expected to be approximately $125 million. The purchase price of the transaction is approximately $27 million, subject to customary adjustments. The company said it will incur a book loss on the sale of approximately $20 million to $30 million.
