BORG Automotive has announced the acquisition of Spanish turbocharger company Turbo Motor Inyeccion S.L. (TMI), adding remanufacturing of turbochargers to its portfolio.
With the acquisition, BORG Automotive hopes to strengthen its presence in the South European markets. It is also said to consolidate its position as the biggest independent producer of remanufactured automotive parts in Europe.
Kim Kruse Andersen, CEO of BORG Automotive, explained: “BORG Automotive has a clear and ambitious growth strategy relying on both organic growth and acquisitions, and we have over the past few years worked on several specific acquisition cases.
“By acquiring TMI, we now take the first big step in this strategy. TMI is a healthy and well-run family-owned business specialising in remanufacturing automotive turbochargers.”
The aftermarket for automotive parts is reportedly in a consolidation process, which is said to make it hard for medium-sized companies. Due to the market conditions, TMI reportedly had to choose between expanding its own business or be included in a bigger group such as BORG Automotive.
Founder and Chairman of TMI, Jesús Lizarraga, added: “My family and I are very happy to join BORG Automotive. We have been in contact over an extended period of time, and we believe that TMI will have the best conditions for continuous growth with BORG Automotive. Personally, I am also pleased that my two sons will continue to be a part of the company. I am confident that they will continue to commit themselves to the company and help fulfil its potential.”
It is expected that the acquisition will be finalised during the fourth quarter of 2020. After the acquisition, BORG Automotive will employ 1,500 people and have production sites in Poland, England, and Spain, as well as sales offices in Denmark and Belgium.
