Global product leader in delivering innovative and sustainable mobility solutions for the vehicle market, BorgWarner announced that the company has sold its Water Valley, Mississippi facility to Atar Capital.
A press release from the company said that the Water Valley sale encompasses the manufacturing facility and the associated solenoid, transmission control module and stop/start accumulator system business located there. Full-year sales of the Water Valley business for 2021 are expected to be approximately $ 180 million. The transaction was completed on December 31, 2021. The consideration consisted of $42 million in cash and notes and up to $30 million in potential earn-out payments. The company expects to incur a U.S. GAAP loss on the sale, which is not expected to be material.
According to the company, the sale is consistent with Project Charging Forward, BorgWarner's accelerated electrification strategy, announced in March 2021.
Outlined in this strategy is a target to dispose of $3 billion to $4 billion in annual revenues from its combustion portfolio by 2025 with approximately $1 billion of that targeted to be executed by late 2022, the release added.