AUBURN HILLS, Michigan – BorgWarner said in a statement on July 13 that it has entered into a definitive agreement to acquire Remy International, Inc. for $9.51 billion in cash.
Under the terms of the agreement, BorgWarner will acquire each of the outstanding shares of Remy for $29.5 in cash, which implies an enterprise value of Remy of approximately $1.2 billion. The transaction is expected to close in the fourth quarter of 2015.
This transaction is featured with high purchasing efficiencies and redundant company expenses, and therefore a decision has been made to make it accretive to earnings in the first year, according to the observation of BorgWarner.
“The acquisition will be a significant step in executing our plan to successfully grow revenue to $15 billion by 2020,” said James Verrier, president and CEO of BorgWarner.
BorgWarner is a product leader in highly engineered components and systems for powertrains around the world with 58 manufacturing and technical facilities across 19 countries.
Remy is a leading global manufacturer providing various ranges of products including alternators, starter motors and electric traction motors with operations across 10 different countries.