CHICAGO -- Auto parts maker BorgWarner Inc. said on Tuesday that it has completed the purchase of a 62 percent stake in German diesel technology company Beru AG for 367 million euros, or about $490 million.
BorgWarner, which makes turbochargers and other components for engines and drivetrains, announced on Nov. 1 that it had reached an agreement to buy a 63 percent stake in Beru to increase its diesel-related business.
"Having a majority ownership in Beru gives us additional access to the fast- growing diesel market and enhances our sensor and engine electronics expertise," BorgWarner Chief Executive Timothy Manganello said in a statement.
BorgWarner said on Tuesday that it paid 59 euros per share for the stake from key shareholders including The Carlyle Group and the Birkel family. It financed 240 million euros locally and funded the rest from available cash.
BorgWarner has begun a tender offer to buy the remaining shares for 67.50 euros each. It expects the acquisition to add to earnings in 2005 and plans to maintain Beru as a stand-alone business in its engine group with no employment changes.
Beru results will be consolidated with the BorgWarner engine group starting in the first quarter, BorgWarner said.