NEW YORK (CNNfn) - Borg-Warner Automotive Inc. was in the driver's seat Friday as the company said it will acquire Kuhlman Corp. for $39 per share, or $660 million.
Chicago-based Borg-Warner Automotive (BWA), a supplier of engineered systems and components for automotive powertrain applications, said the deal will include cash, $150 million of Borg-Warner stock and the assumption of debt.
Kuhlman Corp. (KUH), based in Savannah, Ga., is a leading supplier of turbochargers and other highly engineered components for commercial vehicles.
The transaction is subject to review by Kuhlman shareholders and customary regulatory review. It is expected to close in the first quarter of 1999.
John F. Fiedler, Borg-Warner's chairman and chief executive officer, said the company expects its engine components and systems businesses to increase from 15 percent to about half of Borg-Warner's revenue.
Fiedler also said Kuhlman's electrical transformer and wire and cable businesses are outside Borg-Warner's strategic focus and will be sold.
Borg-Warner (BWA) was down 13/16 at 51-13/16. Kuhlman was up 15/16 at 31-1/2.