BorgWarner Inc. and Hubei Surpass Sun Electric (SSE) announced that they have entered into an Equity Transfer Agreement under which BorgWarner has agreed to acquire the Electric Vehicle Solution, Smart Grid and Smart Energy businesses of SSE. The transaction has an enterprise value of up to RMB 410 million, of which approximately RMB 267 million would be delivered at or soon after closing. Up to RMB 143 million could be paid in the form of contingent payments over approximately two years following the closing.
Headquartered in Xiangyang, Hubei province, China, SSE’s electrification business supplies patented electric vehicle charging solutions to customers in China and more than 70 other countries. SSE has delivered over 50,000 charging points and has led the engineering, procurement, and construction (EPC) of more than 250 charging station sites. SSE’s charging and electrification capabilities in China are expected to complement BorgWarner’s existing capabilities in Europe and North America. SSE’s 2022 revenues for the electrification business are expected to be approximately RMB 180 million.
The transaction is subject to satisfaction of customary closing conditions and SSE shareholder approval. The closing is expected in first quarter 2023.
“This transaction makes good business sense as we continue to bolster our fast-charging capabilities globally,” said Frédéric Lissalde, President and CEO of BorgWarner. “SSE will bring enhanced offerings while supporting Charging Forward, our strategy to accelerate our growth in electrification. We look forward to welcoming their talented team to BorgWarner.”