Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

BorgWarner Agrees to Sell Unit to Federal-Mogul

July 2 (Bloomberg) -- BorgWarner Inc. said it agreed to sell its spark-plug unit to Federal-Mogul Corp. The price wasn’t disclosed.

BorgWarner, based in Auburn Hills, Michigan, acquired the unit as part of a 2005 transaction. The company will incur a pretax loss of $50 million to $60 million related to the sale, BorgWarner said in a statement today.

Federal-Mogul, based in Southfield, Michigan, said in March it plans to create a separate and independent aftermarket unit. The business, which sells auto parts through retailers, comprised 34 percent of company revenue last year, down from 44 percent in 2009.

BorgWarner, which saw sales of $80 million for its spark-plug business in 2011, said it will expand glow plugs, diesel cold start systems, and other gasoline-ignition technologies. Federal-Mogul, in a separate statement, said its annual spark plug capacity will be more than 350 million once the acquisition is completed. Federal-Mogul owns the Champion spark plug brand.

BorgWarner fell 0.5 percent to $65.23 at the close in New York. Federal-Mogul gained 0.7 percent to $11.08.

To contact the reporter on this story: Hasan Dudar in Southfield, Michigan at hdudar@bloomberg.net

To contact the editor responsible for this story: Bill Koenig at wkoenig@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.