PENDLETON, IN -- Remy International, Inc. has signed a definitive agreement to be acquired by BorgWarner Inc., a product leader in highly engineered components and systems for powertrains around the world.
Commenting on the transaction, Remy Chairman John Weber said, "This transaction provides substantial value to our shareholders, our employees and business partners around the globe. 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."
Remy's President and Chief Executive Officer, Jay Pittas, added, "Our products and capabilities should complement BorgWarner very well and support growing vehicle electrification trends. We are confident our customers and channel partners will benefit from the strategic fit, as it brings together two long-standing industry leaders."
Financial Highlights and Transaction Terms
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.
UBS Investment Bank acted as financial advisor and Sullivan & Cromwell LLP provided legal advice to Remy International.