US: BorgWarner to buy US$1.2bn Remy International
BorgWarner Remy buy part of plans to grow revenue to US$15bn by 2020
BorgWarner says it will acquire rotating electrical component company, Remy International with outstanding sharers valued at US$29.50, implying an enterprise value of US$1.2bn.
Remy has technologies and operations in ten countries on five different continents and as of 31 December, 2014 the company employed 6,600 people and, for the fiscal year, generated sales of US$1.2bn.
"We look forward to welcoming Remy's talented employees to BorgWarner," said BorgWarner CEO, James Verrier. "Their products and capabilities will strengthen BorgWarner's position in the rapidly developing powertrain electrification trend.
"The acquisition will be another step in executing our plan, to profitably grow revenue to US$15bn by 2020."
BorgWarner adds it has identified "purchasing efficiencies" and "redundant public company expenses," as well as 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 and is subject to certain customary terms and conditions, including the approval of Remy's stockholders and antitrust and other regulatory clearances in the US and abroad.
The transaction is expected to close in the fourth quarter of 2015.
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 ten 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. “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.” Financial Highlights and Transaction Terms 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 completion of the transaction is subject to certain customary terms and conditions, including the approval of Remy’s stockholders and antitrust and other regulatory clearances in the United States and abroad. The transaction is expected to close in the fourth quarter of 2015. BofA Merrill Lynch acted as financial advisor and Sidley Austin LLP provided legal advice to BorgWarner. Conference Call At 9:00 a.m. ET today, a brief conference call concerning the transaction will be webcast at: http://www.borgwarner.com/en/Investors/default.aspx. About BorgWarner BorgWarner Inc. (NYSE: BWA) is a product leader in highly engineered components and systems for powertrains around the world. Operating manufacturing and technical facilities in 58 locations in 19 countries, the company delivers innovative powertrain solutions to improve fuel economy, reduce emissions and enhance performance. For more information, please visit borgwarner.com. About Remy International, Inc. Founded by the Remy brothers in 1896, Remy International, Inc. (NASDAQ: REMY) is a leading global manufacturer, remanufacturer, and distributor of alternators, starter motors, and electric traction motors for the automotive and commercial vehicle industry, marketed under the Remy® and Delco Remy® brands. The company also provides multiline products through its subsidiaries. Headquartered in Pendleton, Indiana, with operations across five continents and ten countries, Remy is a trusted partner to original equipment manufacturers and aftermarket organizations worldwide, delivering creative solutions for today's vehicle challenges.
Original source: https://www.borgwarner.com/en/News/PressReleases/BWNews/BorgWarner%20Enters%20into%20Agreement%20to%20Acquire%20Remy%20International_Press%20Release.pdf