BorgWarner inks pact to acquire Remy International

BorgWarner announced today that it has entered into a definitive agreement to acquire Remy International, Inc (Remy), a global market leading producer of rotating electrical components.

With key technologies and operations in 10 countries on five different continents, Remy is strongly positioned to benefit from global growth. As of December 31,2014 the company employed 6,600 people and, for the fiscal year, it generated sales of $1.2 billion.

Remy is manufactures, remanufactures and distributes alternators, starter motors, electric traction motors for the automotive and commercial vehicle industry, marketed under the Remy and Delco Remy brands.

“We look forward to welcoming Remy’s talented employees to BorgWarner. Their products and capabilities will strengthen BorgWarner’s position in the rapidly developing powertrain electrification trend,” said James Verrier, president and CEO of BorgWarner. “The acquisition will be another step in executing our plan, to profitably grow revenue to $15 billion by 2020.”

Under the terms of the agreement, BorgWarner will acquire each of the outstanding shares of Remy for $29.50 in cash, which implies an enterprise value of Remy of approximately $1.2 billion.

BorgWarner has identified purchasing efficiencies, redundant public company expenses, other cost synergies and numerous opportunities to accelerate growth through the combined business. The transaction is expected to be accretive to earnings in the first year. The transaction is expected to close in the fourth quarter of 2015.