Auto parts manufacturer BorgWarner Inc. on Jan. 4 agreed to sell its thermostat business to Arlington Industries Group Ltd for about €24 million, subject to customary adjustments.

The transaction — expected to complete in the first quarter of 2019, subject to customary closing conditions — includes manufacturing facilities in Oberboihingen, Germany; and Piracicaba, Brazil.

The thermostat business is part of Gustav Wahler GmbH u. Co. KG, the exhaust gas recirculation valve business that BorgWarner acquired from Wahler Verwaltungsgesellschaft mbH in 2014. It is expected to report 2018 full-year sales of about €110 million.

BorgWarner will incur a book loss of approximately between $20 and $30 million from the sale of the unit, which is not core to its focus on propulsion systems for combustion, hybrid and electric vehicles, the release said.