BorgWarner’s $3.3 Billion Acquisition of Delphi Technologies

Simpson Thacher & Bartlett LLP acted as BorgWarner legal advisor and Kirkland & Ellis LLP acted as Delphi Technologies legal advisor in the transaction.

BorgWarner Inc. (NYSE: BWA) and Delphi Technologies PLC (NYSE: DLPH) have entered into a definitive transaction agreement under which BorgWarner will acquire Delphi Technologies in an all-stock transaction that values Delphi Technologies’ enterprise value at approximately $3.3 billion. The combined company is expected to be one of the leading pure-play propulsion companies globally.

The acquisition would strengthen BorgWarner’s power electronics products, capabilities and scale. Combining with Delphi Technologies is consistent with BorgWarner’s evolution towards the propulsion market of the future and would enable BorgWarner to maintain flexibility across combustion, hybrid, and electric propulsion (C-H-E).

Under the terms of the agreement, which has been approved by the boards of directors of both companies, Delphi Technologies stockholders would receive a fixed exchange ratio of 0.4534 shares of BorgWarner common stock per Delphi Technologies share. Upon closing of the transaction, current BorgWarner stockholders are expected to own approximately 84% of the combined company, while current Delphi Technologies stockholders are expected to own approximately 16%.

BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles.

Delphi Technologies is a global provider of propulsion technologies that make vehicles drive cleaner, better and further. It offers pioneering solutions for internal combustion engine, hybrid and electric passenger cars and commercial vehicles.

BofA Securities, Inc. and Rockefeller Financial LLC acted as financial advisors to BorgWarner. Goldman Sachs International acted as financial advisor to Delphi Technologies.

The Kirkland team was led by transactional partners Eric Schiele (Picture), David Klein and Joseph Halloum; capital markets partner Sophia Hudson and associate Zoey Hitzert; tax partners Dean Shulman and Sehj Vather; debt finance partners Melissa Hutson and Omar Raddawi; and technology & IP transactions partners Seth Traxler and Shellie Freedman.

The Simpson Thacher team included Mario Ponce, Katie Sudol, Philip Cooper, Michael Chao, Michael Ratay, Ngozi Nezianya, Teresita Acedo and Ashley Gherlone (M&A); Jeannine McSweeney, Erin Murphy, Eric Wolf and Arielle Trapp (ECEB); Sara Razi, Ellen Frye and Tomi Mendel (Antitrust); Lori Lesser and Melanie Jolson (IP); Robert Holo and Jasmine Hay (Tax); Michael Isby (Environmental); Jennifer Hobbs and Leah Nudelman (Banking and Credit); and Richard Fenyes (Capital Markets).

Involved fees earner: Joseph Halloum – Kirkland & Ellis; Zoey Hitzert – Kirkland & Ellis; Sophia Hudson – Kirkland & Ellis; Melissa Hutson – Kirkland & Ellis; David Klein – Kirkland & Ellis; Omar Raddawi – Kirkland & Ellis; Eric Schiele – Kirkland & Ellis; Dean Shulman – Kirkland & Ellis; Seth Traxler – Kirkland & Ellis; Sehj Vather – Kirkland & Ellis; Shellie Weisfield Freedman – Kirkland & Ellis; Teresita Acedo – Simpson Thacher & Bartlett; Michael Chao – Simpson Thacher & Bartlett; Philip Cooper – Simpson Thacher & Bartlett; Richard Fenyes – Simpson Thacher & Bartlett; Ellen Frye – Simpson Thacher & Bartlett; Ashley Gherlone – Simpson Thacher & Bartlett; Jasmine Hay – Simpson Thacher & Bartlett; Jennifer Hobbs – Simpson Thacher & Bartlett; Robert Holo – Simpson Thacher & Bartlett; Michael Isby – Simpson Thacher & Bartlett; Melanie Jolson – Simpson Thacher & Bartlett; Kathryn King Sudol – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Jeannine McSweeney – Simpson Thacher & Bartlett; Tomi Mendel – Simpson Thacher & Bartlett; Erin Murphy – Simpson Thacher & Bartlett; Ngozi Nezianya – Simpson Thacher & Bartlett; Leah Nudelman – Simpson Thacher & Bartlett; Mario Ponce – Simpson Thacher & Bartlett; Michael Ratay – Simpson Thacher & Bartlett; Sara Razi – Simpson Thacher & Bartlett; Arielle Trapp – Simpson Thacher & Bartlett; Eric Wolf – Simpson Thacher & Bartlett;

Law Firms: Kirkland & Ellis; Simpson Thacher & Bartlett;

Clients: BorgWarner; Delphi Technologies;

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Author: Ambrogio Visconti