BorgWarner Divests Remy Aftermarket Unit

Auburn Hills, Mich.-based BorgWarner Inc. is selling its Remy light-vehicle aftermarket business to an investor group led by New York private equity firm Torque Capital Group. The $80 million deal is expected to close by year-end.

BorgWarner inherited the aftermarket business as part of its $1.2 billion purchase of Remy International Inc. last year. The supplier will retain Remy’s core electrical business and the Delco Remy commercial unit.

The aftermarket business employs 3,000 people and generated revenue of $142 million through the first half of 2016. Seven manufacturing plants are included in the sale: two each in the U.S. (Ohio and Oklahoma) and Mexico along with single facilities in Belgium, Hungary and Tunisia.

BorgWarner predicts a pre-tax loss of $95 million to $125 million in 2016 due to the transaction. The supplier had a net income of $610 million on revenue of $8 billion in 2015.