BorgWarner Agrees To Sell Spark Plug Business To Federal-Mogul
BorgWarner (NYSE: BWA) announces the sale of its spark plug business to Federal-Mogul Corporation (NASDAQ: FDML). The sale includes manufacturing facilities in Chazelles, France and Neuhaus, Germany. Completion of the transaction is subject to regulatory approvals.
The spark plug business was a small segment of the BERU operations acquired by BorgWarner in 2005. Sales were approximately $80 million in 2011. BorgWarner will continue its focus on expanding the core BERU Systems products of glow plugs, diesel cold start systems and other gasoline ignition technologies.
As a result of the transaction and related restructuring activities, including the write-off of excess purchase price allocation related to the 2005 BERU acquisition, BorgWarner will incur a pre-tax loss of $50-$60 million subject to final closing adjustments.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.