BorgWarner Sells Water Valley, Mississippi Facility to Atar Capital

  • Divestiture consistent with BorgWarner’s Charging Forward Strategy

Auburn Hills, Michigan, January 5, 2022 – BorgWarner Inc. (“BorgWarner”) has sold its Water Valley, Mississippi facility to Atar Capital. The sale is consistent with Project Charging Forward, BorgWarner’s accelerated electrification strategy which the Company 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 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.

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