The Carlyle Group Sells Stake in Beru AG for €218 Million to BorgWarner Inc.

Global private equity firm The Carlyle Group announces today it has agreed to sell its 37.1% stake in the automotive supplier Beru to BorgWarner Inc. BorgWarner has agreed to buy the stake at a share price of €59, totalling €218m for the Carlyle shareholding.

“Beru is an excellent company, and this was a very successful investment for us,” said a spokesman for The Carlyle Group. “We believe that BorgWarner is an ideal industrial partner with a very good strategic fit that will further develop the company in the interest of all stakeholders. Like all shareholders Carlyle has benefited from the excellent work of Beru´s management and employees. Together they have generated sustainable and profitable growth.”

Beru AG is headquartered in Ludwigsburg, Germany and is the world-market leader in cold-start products for diesel-powered engines. Beru has a global market share of approximately 40% for these products. Beru has reported sales of approximately €350 million in 2003/2004.

Carlyle first acquired shares in Beru in 2000 through Carlyle’s European buyout fund, Carlyle Europe Partners I. The sale of this investment is the sixth successful exit from the fund. Carlyle announced the sale of Riello Group two weeks ago, and of Honsel International Technologies in September 2004. Carlyle Europe Partners I was closed in 1998 and has since also exited its investments in Andritz, Materis and Le Figaro.

Financial advisers to The Carlyle Group were Citigroup, and legal advisers were Milbank, Tweed, Hadley & McCloy LLP.

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