BorgWarner Agrees To Sell Spark Plug Business To Federal-Mogul

BorgWarner

announces the sale of its spark plug business to Federal-Mogul Corporation

. 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.