BorgWarner Inc. has finalized its takeover of Akasol AG, the German maker of lithium ion battery systems that it agreed to acquire in February.
BorgWarner became 89 percent owner of Akasol upon the auto supplier's completion of a tender offer for shares of the battery manufacturer, according to a Friday news release.
BorgWarner paid about $788 million from cash balances to settle the tender offer. Following the deal, Akasol will function as an independently operated subsidiary.
"We are excited to add Akasol's innovative products, capabilities and team to BorgWarner as we advance our plan to grow our electric vehicle businesses to approximately 45 (percent) of total revenues by 2030 under Project Charging Forward," CEO Frédéric Lissalde said in the release.
Akasol makes battery systems for buses and commercial vehicles, as well as train engines and marine vehicles. It has more than 300 employees at two plants in Germany and one in Hazel Park, Mich., where the company said last year it would ramp up production to 38,000 modules per year to fulfill new contracts with global commercial vehicle manufacturers.
Under the takeover, BorgWarner offered nearly $146 per share to investors. BorgWarner said in February it took on more than $32 million in debt as part of the deal and opened an undrawn $900 million line of credit to satisfy German regulatory requirements.
BorgWarner's acquisition of Akasol follows its purchase of Delphi Technologies in October 2020 in a $3.2 billion deal. Both additions have boosted the company's electrified propulsion capabilities.
BorgWarner ranked No. 25 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $10.2 billion in 2019.
