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Carlyle sells Beru to US trade buyer

BorgWarner Inc, the US train parts maker, has agreed to buy 63% of German automotive supplier Beru from its shareholders in a €372m deal.

The Carlyle Group, the biggest single stakeholder, will sell its 37.7% stake for €218m. The divestment comes from Carlyle Europe Partners I, which first acquired shares in Beru in 2000. Sources close to the deal suggest the fund doubled its original investment.

BorgWarner also intends to launch a voluntary public tender offer in Germany for all of Beru’s remaining outstanding stock for €67.50 per share, which will bring the total cost of the transaction up to €621m.

Headquartered in Ludwigsburg, Germany, Beru is a supplier of diesel cold start technology, ignition technology, electronics and sensors. On a trailing twelve- month basis ending June 30, 2004, Beru’s net income was €37.2m on sales of €371m.