BorgWarner Agrees to Sell Unit to Federal-Mogul
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 firstname.lastname@example.org