Sevcon, Inc. $200 Million merger agreement with BorgWarner Inc.


Skadden is advising Sevcon, Inc., a world leader in the design and manufacture of controls and battery chargers for zero emission electric and hybrid vehicles, which today announced that it has entered into a definitive merger agreement with BorgWarner Inc. that provides for BorgWarner to acquire all of the outstanding shares of Sevcon’s common stock for $22.00 per share in cash and all of the outstanding shares of Sevcon’s Series A Convertible Preferred Stock for a price per share on an as-converted basis equal to the common stock, together with payment of any accrued and unpaid dividends.

The total transaction value, including the assumption of indebtedness, is expected to be approximately $200 million at the closing of the transaction.

Sevcon, Inc., led by Matthew Boyle and Paul N. Farquhar, was founded in 1987 and is based in Southborough, Massachusetts.

The Skadden team includes: M&A partner Jeremy London (Picture) (Washington, D.C.) and counsel Richard Oliver (Washington, D.C.); Litigation counsel Ronald Brown, III (Wilmington); Tax partner Jessica Hough (Washington, D.C.); Corporate Finance partner Michael Zeidel (New York); and Executive Compensation and Benefits counsel Michael Bergmann (Washington, D.C.).

Involved fees earner: Jeremy London – Skadden Arps Slate Meager & Flom; Richard Oliver – Skadden Arps Slate Meager & Flom; Ronald Brown – Skadden Arps Slate Meager & Flom; Jessica Hough – Skadden Arps Slate Meager & Flom; Michael Zeidel – Skadden Arps Slate Meager & Flom; Michael Bergmann – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: Sevcon, Inc.;

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Author: Ambrogio Visconti