AUBURN HILLS, Mich.,
Oct. 3, 2016 /PRNewswire/ --
BorgWarner has agreed to sell its REMY light vehicle aftermarket
business to an investor group led by Torque Capital Group. The sale
includes manufacturing facilities in San
Luis Potosi, Mexico; Piedras
Negras, Mexico; Twinsburg,
Ohio; Edmond, Oklahoma;
Brussels, Belgium; Jemmal
(Menzel Harb), Tunisia; and Miskolc, Hungary. The
business employs a total of approximately 3,000 people. The
purchase price of the transaction is approximately $80 million, subject to customary
adjustment. Completion of the transaction is expected in the
fourth quarter, subject to the satisfaction of customary closing
conditions.
Sales of this light vehicle aftermarket business through the
first six months of 2016 were approximately $142 million. BorgWarner will retain the
core rotating electric business of the former REMY International,
Inc. to complement its focus on hybrid and electric vehicle
propulsion systems. This transaction does not include other
BorgWarner products or technologies including the DELCO REMY
commercial vehicle products.
As a result of the transaction, including the write-off of
excess purchase price allocation related to the 2015 acquisition of
the former REMY International Inc., BorgWarner estimates that it
will incur a 2016 pre-tax loss of approximately $95-125 million, subject to final closing
adjustments.
About BorgWarner
BorgWarner Inc. (NYSE: BWA) is a
global product leader in clean and efficient technology solutions
for combustion, hybrid and electric vehicles. With manufacturing
and technical facilities in 74 locations in 19 countries, the
company employs approximately 30,000 worldwide. For more
information, please visit borgwarner.com.
Statements contained in this press release may contain
forward-looking statements as contemplated by the 1995 Private
Securities Litigation Reform Act that are based on management's
current outlook, expectations, estimates and projections. Words
such as "anticipates," "believes," "continues," "could,"
"designed," "effect," "estimates," "evaluates," "expects,"
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materially from those expressed, projected or implied in or by the
forward-looking statements. Such risks and uncertainties include:
fluctuations in domestic or foreign vehicle production, the
continued use by original equipment manufacturers of outside
suppliers, fluctuations in demand for vehicles containing our
products, changes in general economic conditions, as well as other
risks noted reports that we file with the Securities and Exchange
Commission, including the Risk Factors identified in our most
recently filed Annual Report on Form 10-K. We do not undertake any
obligation to update or announce publicly any updates to or
revision to any of the forward-looking statements.
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SOURCE BorgWarner Inc.