Auto supplier BorgWarner Inc. said it plans to acquire the vehicle electrification business of Hubei Surpass Sun Electric Co., expanding its electrification foothold to China.
BorgWarner on Tuesday said it will take on SSE's EV solution, Smart Grid and Smart Energy businesses. Based in the Hubei province of China, SSE supplies EV charging services to Chinese consumers, as well as those in more than 70 other countries, according to BorgWarner's statement.
Terms of the transaction value the business at 410 million yuan, or $58.4 million at current exchange rates. About 267 million yuan, or $38 million of that, will be paid upon closing, BorgWarner said.
The latest acquisition follows BorgWarner's August purchase of Rhombus Energy Solutions, which supplies patented technology to EV makers and charging and grid service providers.
Acquiring SSE "makes good business sense" as BorgWarner expands its fast-charging capabilities, CEO Frédéric Lissalde said in a statement.
SSE's past delivery of more than 50,000 charging points and 250 charging station sites complements BorgWarner's existing electrification businesses in Europe and North America, the statement said.
"SSE will bring enhanced offerings while supporting Charging Forward, our strategy to accelerate our growth in electrification," Lissalde said. "We look forward to welcoming their talented team to BorgWarner."
Closing is expected in first-quarter 2023, according to the statement.
Shares in BorgWarner fell 2.4 percent to $36.83 in midday trading on Wall Street.
BorgWarner, based in suburban Detroit, ranks No. 15 on Automotive News' list of the top 100 global parts suppliers, with worldwide sales to automakers of $13.9 million in 2021.
