Auburn Hills-based BorgWarner, a supplier of motor vehicle parts and systems, today announced it has entered into an agreement to acquire Indiana-based Remy International Inc., a manufacturer of alternators and starter motors. Terms of the deal were not disclosed.
“(Remy’s) products and capabilities will strengthen BorgWarner’s position in the rapidly developing powertrain electrification trend,” says James Verrier, president and CEO of BorgWarner, which was formed in 1928 (the company traces its roots to Morse Equalizing Spring Co., founded in 1880).
Verrier says BorgWarner will acquire each of the outstanding shares of Remy for $29.50 in cash. The company was valued at about $1.2 billion. Remy employs 6,600 and generated sales of $1.2 billion as of December 2014.
“Our products and capabilities should complement BorgWarner very well and support growing vehicle electrification trends,” says Jay Pittas, president and CEO of Remy International in Pendleton, which was founded in 1896. “We’re confident our customers and channel partners will benefit from the strategic fit, as it brings together two long-standing industry leaders.”
BorgWarner has about 22,000 employees working at manufacturing and technical facilities in 58 locations in 19 countries. The automotive supplier saw about $8 billion in sales in 2014.
The transaction is expected to close in the fourth quarter.