BorgWarner Inc. has agreed to buy Remy International Inc. for
about $95 million in cash, combining two suppliers of electrical
components for the auto industry.
The offer of $29.50 a share represents a 44% premium to Remy's
closing price of $20.53 a share on Friday. The enterprise value of
the deal, which often includes the assumption of debt, is $1.2
billion.
Auburn Hills, Mich.-based BorgWarner makes powertrain
technology, with products including engine timing systems and air
and noise management.
Pendleton, Ind.-based Remy makes alternators, starter motors and
electric traction motors.
"Our products and capabilities should complement BorgWarner very
well and support growing vehicle electrification trends," said Remy
Chief Executive Jay Pittas in a news release.
BorgWarner expects the deal to be accretive to earnings in the
first year.
The deal is expected to close the fourth quarter of the
year.
Shares of Remy, halted in premarket trading, have fallen 7.7% in
the past year. BorgWarner's shares, inactive premarket, are down
19% over the same period.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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