BorgWarner announces that it has completed the signing of the equity transfer agreement with Santroll Holdings and Santroll Auto Parts. In light of this, BorgWarner intends to acquire Santroll Auto Parts (the business was formerly divested from Santroll) for approximately RMB 1.4 billion. This includes equity transfer consideration of RMB 1.1 billion and contingent consideration of up to RMB 300 million. The transaction is primarily funded by BorgWarner's cash balance.
　　It is reported that Santroll Auto Parts, located in Tianjin, China, is a manufacturer of hairpin and centralized winding motors for light vehicles and supplies products based on its patented developments to domestic OEMs. Currently, it has about 400 employees and its expertise in process design and automation has contributed to the establishment of good relationships with many major Chinese customers.
　　The acquisition is expected to further enhance BorgWarner's ability in vertical integration and scale and expand the light vehicle motor product portfolio to increase market reach. The delivery is expected to be completed by the end of the first quarter of 2022 and is subject to the fulfillment of the delivery conditions agreed by the parties.
　　Frédéric Lissalde, President and CEO of BorgWarner, comments: "The motor product line has always been an important element in BorgWarner's strategy, and Santroll will enable us to enrich our existing motor line with its patented technology-based motor products. Together, we will build differentiated, vertically integrated product capabilities to bring stronger solutions as well as optimized scale to customers."