Electric car parts maker sold in £150m merger deal

Tue, 18 Jul 2017 | MERGER

A Gateshead-based company that manufactures parts for electric vehicles is set to be sold to a US automotive firm in a merger deal worth around £150 million.

The North East firm, called Sevcon, has entered into a merger agreement with Michigan’s BorgWarner Inc that would see the British company acquired for $22 (£17) per share.

The deal places Sevcon’s value at around $200 million (£154 million), outstripping its market value by 61 per cent and reflecting the company’s recent contract wins, which will see it making parts for a British supercar company and several overseas suppliers.

Increasing global demand for electric and other low-carbon vehicles has seen Sevcon’s order book swell over the past three years to now be worth £320 million.

Sevcon’s president and CEO, Matt Boyle, told employees that the acquisition could signal a period of substantial growth at the company. The company has recently moved to Gateshead’s Team Valley business park and begun to recruit 200 new employees to add to its existing workforce of 80, though this headcount is expected to rise following the deal’s completion.

Boyle added that the Sevcon board had unanimously approved the proposed merger and, pending approval from shareholders, that the deal would close within the next two months.

He said: “I am enormously proud of what we have achieved so far. To carry that work forward we need to become larger quickly, as required by our potential customers. We need to take on the substantially greater projects which a merger with BorgWarner will allow us to consider.

“The combination of Sevcon and BorgWarner skills is what the market for electrification is demanding.”

It is unclear whether the Gateshead firm would continue under its own brand or be subsumed into the BorgWarner name, though its senior team – including Boyle – will remain.

Subscribe to Business Sale Report here


Share this article



Latest Businesses for Sale

Print & Embroidery Business
Cambridgeshire, East of England, UK

Operating in excess of 30 years print and embroidery specialists. This is a retirement sale. Offers invited.

Asking Price: £750,000
Turnover: £1,500,000

LEASEHOLD


Large Property Portfolio Business
East Riding of Yorkshire, Yorkshire and the Humber, UK

Large property portfolio. All properties are residential. All properties are in good order. Situated in a compact geographical area. Offers invited.

Asking Price: £6,000,000
Turnover: £480,000

Showhome Interior Designers & Furnishers
Cambridgeshire, UK Wide

Established 1981. Enviable reputation. Fantastic trading location. Semi-retirement sale. Offers invited.

Asking Price: £775,000
Turnover: £1,269,946

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
17
 
Jul
 

Preston caravan manufacturer seeks buyer following administration | ADMINISTRATION

A caravan manufacturing business in Preston is on the lookou...

 
16
 
Jul
 

Farsound Aviation sold to AGIC for £115 million | BUSINESS SALE

A supply chain management company operating in the aviation ...

 
15
 
Jul
 

Specialist engineering firm forced to appoint administrators | ADMINISTRATION

Rail contracting company Aspin Group Limited has been forced...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources