News: Powertrains and rotating electrics; auto reman consolidation
BorgWarner agrees to acquire Remy International
Wednesday, 29th July 2015
Market consolidation for engine and drivetrain efficiency
BorgWarner Inc., who make highly engineered components and systems for powertrains, has entered into a "definitive agreement" to acquire Remy International, Inc., a global producer of rotating electrical components.
BorgWarner operates manufacturing and technical facilities in 58 locations in 19 countries. With key technologies and operations in 10 countries on 5 continents, Remy is positioned to benefit from global growth.
BorgWarner will acquire each of the outstanding shares of Remy for $29.50 in cash, valuing Remy at around $1.2 billion. Completion is subject to certain terms and conditions - including the approval of Remy's stockholders and antitrust and other regulatory clearances in the USA and elsewhere. The acquisition is expected to complete in Q4 2015.
James Verrier, President and CEO of BorgWarner, said: "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." He sees the acquisition as "another step in executing our plan to profitably grow revenue to $15 billion by 2020.”
More on this story, which continues a trend of consolidation in the auto reman area, is available from APRA.