Arlington Industries Group has finalized its acquisition of BorgWarner's Wahler thermostat business and will reorganize its automotive operations into two business units, thermal management and engineered systems.
The acquisition of Wahler, announced in January and finalized this week, will make Arlington the second-largest supplier of thermostats after Nippon Thermostat Company of Japan. The deal has a value of $24 million, BorgWarner said in January. BorgWarner acquired Wahler in 2014 in a deal that analysts valued at $350 million and will book a net loss on the Wahler sale of $20 million to $30 million.
Arlington's thermal management division will include the Wahler, Magal and Dauphinoise Thomson brands, with factories in Brazil, Britain, China, France, Germany and the U.S. The engineered systems division will produce electric, fluid and air, mechanical and aftermarket module assembles, as well as Magal's cable business.
Paddy Lange, most recently head of BorgWarner's ETS business unit, will lead the thermal management division, Arlington said. Peter Coates, managing director of Arlington's operations in Slovakia and British plants, will lead the engineered systems division.
Arlington Industries Group, based in Manchester, England, is privately held, with Cartesian Capital Group as its major shareholder. It produces components for aerospace and automotive customers including Ford, Honda, Jaguar Land Rover and Nissan.