View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
July 14, 2015

US: BorgWarner to buy US$1.2bn Remy International

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.

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.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto