Auburn Hills, Michigan – BorgWarner Inc. has agreed to buy Germany’s Akasol AG to significantly expand its commercial vehicle electrification capabilities. The $915 million deal (including absorbing Akasol’s debt) gives BorgWarner technology and production capabilities for customizable battery packs for buses, commercial vehicles, rail vehicles, industrial vehicles, ships, and boats.
Akasol’s system is cell-agnostic, providing a low-cost, flexible solution. With more than 300 full-time employees and three facilities across Germany and one facility in Detroit, Michigan, Akasol is well positioned to capitalize on the large market opportunity across Europe and North America.
“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,” said Frédéric Lissalde, president and CEO of BorgWarner. “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.”
BorgWarner believes the acquisition would significantly strengthen its commercial vehicle and off-highway battery systems business as it continues to execute its electrification strategy. With the global, lithium-ion battery market for electric vehicles expected to grow, Akasol is well positioned to meet the demand for battery systems in commercial EVs.
Akasol is expected to continue to be run independently from its German headquarters. BorgWarner plans to keep CEO Schulz, CFO Carsten Bovenschen, and CTO Stephen Raiser in their roles after completion of the transaction.
The companies expect to complete the deal in the first half of this year. BorgWarner plans to fund the purchase with existing cash balances and potentially some incremental debt.
BorgWarner grew tremendously last year by buying former General Motors division Delphi Technologies. Originally billed as a $3.3 billion purchase, the companies agreed to a smaller $2.8 billion deal in mid-2020 as the COVID-19 pandemic had upended their abilities to complete the original transaction. The deal cleared in October, 2020.