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The acquisition coincided with a divestiture of BorgWarner Morse from its parent, BorgWarner who included US$172 million in cash in the deal.
Enstar Group (NASDAQ:ESGR), an insurance company that has completed 95 legacy acquisitions since 2001 announced that it has acquired renewable energy firm, BorgWarner Morse, a subsidiary of BorgWarner (NYSE:BWA). This marks its second acquisition of a company that is outside of the insurance industry.
As quoted in the press release:
BorgWarner is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Morse TEC holds approximately $0.8 billion liabilities associated with personal injury asbestos claims and environmental claims arising from BorgWarner’s legacy manufacturing operations. Morse TEC’s assets include, among others, insurance rights related to coverage against these liabilities and cash and marketable securities.
Dominic Silvester, Enstar’s Chief Executive Officer, said:
“Enstar continues to provide market-leading legacy solutions for large corporates and their historic liabilities. This is our second acquisition of a non-insurance company and we see a growing potential market here as we expand our business.”
Click here to read the full press release.
