BorgWarner Inc and AKASOL AG have signed a Business Combination Agreement to position BorgWarner to significantly expand its commercial vehicle electrification capabilities.
As per the agreement, a fully-owned subsidiary of BorgWarner will launch a voluntary public takeover offer at €120.00 per share in cash for all outstanding shares of AKASOL.
Holders of around 59 per cent of AKASOL’s outstanding shares have committed through Irrevocable Undertakings to accept the offer in connection with their shares.
The offer represents a premium of approximately 23 per cent to AKASOL’s three-month volume-weighted average share price prior to announcement and values AKASOL at a total enterprise value of approximately €754 million2, which includes the assumption of €27 million of net debt.
Frédéric Lissalde, President and CEO of BorgWarner, said, “AKASOL is an excellent strategic fit as BorgWarner seeks to continue to expand its electrification portfolio and capitalize on the profound industry shift towards electrification. AKASOL’s manufacturing footprint and established, in-production customer base are complementary to BorgWarner’s and would accelerate our foothold into the fast-growing commercial vehicle and off-highway battery pack market.”
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He added: “AKASOL is highly-regarded as a reputable and reliable partner, and like us, they have a customer-first mentality and a culture of innovation and environmentally friendly technology leadership. We look forward to welcoming their incredibly talented team to BorgWarner.”
Sven Schulz, CEO and Founder of AKASOL, stated: “The Executive Board welcomes the strategic partnership with BorgWarner, as it offers significant strategic perspectives to AKASOL.”
He further said, “BorgWarner shares our vision of emission-free mobility, and with joint forces, we will expand AKASOL’s technology and market leadership for high-performance battery systems.”
Customizable battery packs
AKASOL based out of Darmstadt in Germany designs and manufactures customizable battery packs for use in commercial vehicles, buses, rail vehicles and industrial vehicles, as well as in boats and ships.
The proprietary system technology of AKASOL is cell-agnostic, providing a low-cost, flexible solution to customers.
With over 300 full-time employees and three facilities across Germany and one facility in the US, AKASOL believes it is well positioned to tap the large market opportunity across North America and Europe.
(With inputs from Automotive Lead Research Team)
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