(NYSE: BWA) announced Monday morning that the two companies had entered into a definitive merger agreement.
Advertisement
BorgWarner Inc.is buying Remy global Inc. for $29.50 a share, or a 44 percent premium from Friday’s closing price, driving further consolidation of the auto-parts industry. Bank of America Corp. acted as financial adviser to BorgWarner, and Sidley Austin LLP provided legal advice. (Remy), a global market leading producer of rotating electrical components. Headquartered in Pendleton, Indiana, with operations across five continents and ten countries, Remy is a trusted partner to original equipment manufacturers and aftermarket organizations worldwide, delivering creative solutions for today’s vehicle challenges. “We look forward to welcoming Remy’s talented employees to BorgWarner”.
“Our products and capabilities should complement BorgWarner very well and support growing vehicle electrification trends”, Remy’s CEO Jay Pittas said.
Turbochargers, a key product for Auburn Hills-based BorgWarner, compress air to maximize the power an engine produces. The company has operating manufacturing and technical facilities in 58 locations in 19 countries.
Shares of Remy, halted in premarket trading, have fallen 7.7% in the past year.
The investigation concerns whether Remy’s board failed to satisfy their duties to the Company’s shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the Company’s shares of common stock.
Advertisement
BorgWarner shares were up 2.2% at $54.83 on a 52-week trading range of $48.40 to $66.79. The maker of turbochargers and transmission parts said the deal is set to close in the fourth quarter and should add to earnings in the first year because of purchasing efficiencies and other savings.
