Borgwarner wraps up German Akasol's takeover

US powertrain components manufacturer Borgwarner Inc (NYSE:BWA) has completed the acquisition of Akasol AG and now has full control over the German lithium-ion battery systems provider.

The US company owns all shares in Akasol after the successful completion of a squeeze-out.

“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 Borgwarner's president and chief executive Frederic Lissalde.

Akasol accounts for between 20% and 25% of the inorganic sales underlying Project Charging Forward, contributing USD 600 million (EUR 528.86m) in expected electric vehicle revenue by 2025. Borgwarner launched Project Charging Forward in March 2021 with the aim of growing the company’s revenue from electric vehicles to about 45% of total revenue by 2030.

Borgwarner acquired nearly 93% of Akasol last year following a takeover offer that valued the German company at more than EUR 727 million (USD 824.78m). The US investor paid EUR 120 apiece for the holding and launched a squeeze-out offering EUR 119.16 apiece in cash for the remaining shares.

Akasol, founded in Darmstadt in 2008, manufactures lithium-ion battery systems for buses, trains, trucks, and ships for customers such as Daimler, Alstom, and Volvo. In the first nine months of 2021, the company booked revenue of EUR 67.8 million and an operating loss of EUR 17.8 million.

(USD 1 = EUR 0.881)

(EUR 1 = USD 1.134)

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