BorgWarner to Buy Remy International

Auburn Hills, Mich.-based BorgWarner Inc. has agreed to purchase Remy International Inc. for $950 million in cash. The deal, which is valued at about $1.2 billion including debt assumption, is expected to close in the fourth quarter.

BorgWarner says Remy's portfolio of electric and hybrid motors will strengthen its core turbocharger and transmission component businesses as the trend toward electrification increases. It also expects to accelerate growth through the combined operations and save more than $15 million per year by 2017 through purchasing efficiencies and other synergies.

Pendleton, Ind.-based Remy International, which makes alternators, starter motors and electric traction motors for automotive and commercial vehicle applications, posted sales of $1.2 billion last year.

Formed by brothers Frank and Perry Remy as Delco Remy in 1896, the company was purchased by General Motors in 1918. It was spun off in 2004 and reorganized under bankruptcy in 2007.