Remy International, Inc. is set to be acquired by BorgWarner Inc. in a $1.2 billion deal the companies announced Monday.
“This transaction provides substantial value to our shareholders, our employees and business partners around the globe,” says Remy Chairman John Weber. “It provides an opportunity to market our products to a much broader and diverse group of original equipment manufacturers. The product and technology synergies are obvious, resulting from each company’s historical focus on separate areas of the global powertrain market.”
“Our products and capabilities should complement BorgWarner very well and support growing vehicle electrification trends,” adds Remy’s President and Chief Executive Officer, Jay Pittas. “We are confident our customers and channel partners will benefit from the strategic fit, as it brings together two long-standing industry leaders.”
Under the terms of the agreement, BorgWarner will acquire all of the outstanding shares of Remy for $29.50 per share in cash, which implies an enterprise value of Remy of approximately $1.2 billion.
The completion of the transaction is subject to the approval of Remy’s stockholders as well as certain customary terms and conditions, including antitrust and other regulatory clearances in the U.S. and abroad. The transaction is expected to close in the fourth quarter of 2015.
