Sevcon has grown from its Gateshead base to rising as a global supplier of control and power solutions for zero-emission, electric and hybrid vehicles. The company’s products control on- and off-road vehicle speed and movement, integrate specialized functions, optimize energy consumption and help reduce air pollution.
Despite the overseas nature of the deal, Sevcon President and CEO Matt Boyle remains resolute that the arrangement will only benefit the firm’s native North East.
Mr Boyle explained: “BorgWarner has made it abundantly clear that it is our electrification pedigree and skills they are interested in. It will continue to invest in the North East and pursue the strategic ambitions of the business.
“Both businesses are focused on supporting the global electrification transition and the future looks very bright for our North East workforce and homegrown technologies.”
The Sevcon Board of Directors, who unanimously approved the agreement, revealed that the deal is likely to be completed by the end of the year. Entering a definitive merger agreement, BorgWarner will acquire all of the outstanding shares of Sevcon’s common stock for $22.00 per share.
James Verrier, President and CEO of BorgWarner, said that the deal was struck due to Sevcon complementing BorgWarner’s power electronics capabilities, utilised to provide electrified propulsion solutions. He commented:
“This acquisition supports our existing strategy to supply leading technology for all types of propulsion systems; combustion, hybrid and electric. We look forward to welcoming Sevcon’s talented employees to BorgWarner.” Mr Boyle added:
“The proposed merger with BorgWarner provides substantial value to our stockholders and the chance for Sevcon to maximise previous growth investments and capitalise on greater opportunities as a part of a much larger organization with significant market presence.