BorgWarner to acquire electric hybrid systems segment of Eldor for €75m

BorgWarner, a global automotive industry components and parts supplier, has agreed to purchase the electric hybrid systems (EHS) business segment of Eldor Corporation.

The acquisition, priced at €75 million at closing with a potential additional amount due subject to an earnout, is set to integrate on-board chargers (OBCs), DC/DC converters, and integrated high voltage boxes, all part of Eldor’s electric hybrid systems segment, into BorgWarner’s current product portfolio.

Pasquale Forte — Eldor President said: “BorgWarner represents the best opportunity for the Eldor EHS team to grow further from both a professional and managerial standpoint at a global scale.

“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.”

Based in Italy, Eldor’s electric hybrid systems products are designed to expand BorgWarner’s capacity to engineer compact and efficient 400V and 800V on-board chargers that can function with a range of regional grid configurations globally.

The acquisition will also introduce innovative and cost-effective high-frequency DC/DC converter technology into BorgWarner’s offerings. The company forecasts that Eldor’s electric hybrid systems business will generate €25 million of revenue for the full year 2023, and expects revenues to reach approximately €250 million by 2027 in relation to its Charging Forward 2027 targets.

Frédéric Lissalde — BorgWarner President and CEO said: “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.

“As we continue with our Charging Forward M&A strategy, we look forward to welcoming Eldor’s talented team to BorgWarner later this year.”

Subject to the fulfillment of closing conditions, the transaction is anticipated to conclude in the third quarter of 2023.