NW Tech Transformers Banner

Posted on July 18, 2017 by staff

Electric vehicle firm Sevcon set for £153m buy-out

Global electric vehicle component supplier Sevcon is set to be bought by a US automotive leader in a £153m deal.

The Gateshead-based company, which manufactures control and power solutions for electric and hybrid vehicles, struck a deal with BorgWarner, to pay £16.89 ($22) per share.

Sevcon chief executive and president Matt Boyle said: “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.”

James Verrier, president and CEO of BorgWarner, added: “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.”

“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.”

Sevcon enjoyed a record year in 2016.