This week two of the automotive industry’s famous names announced that they have agreed to merge.
In a statement on Monday July 13, Remy International’s chairman, John Weber announced that the company has accepted a proposal under which Borg Warner will acquire Remy depending on approval by Remy’s shareholders. If the shareholders approve, the transaction will be completed in the fourth quarter of 2015.
Founded more than 100 years ago, Remy International is a global manufacturer, remanufacturer, and distributor of alternators, starter motors, and electric traction motors for the automotive and commercial vehicle industry.
BorgWarner Inc. is a world-wide supplier of components and systems for powertrains and operates manufacturing and technical facilities in 58 locations in 19 countries.
Commenting on the transaction, Remy Chairman John Weber said, "This transaction provides substantial value to our shareholders, our employees and business partners around the globe. It provides an opportunity to market our products to a much broader and diverse group of original equipment manufacturers. The product and technology synergies are obvious, resulting from each company's historical focus on separate areas of the global powertrain market."
Remy’s President and Chief Executive Officer, Jay Pittas, added, "Our products and capabilities should complement BorgWarner very well and support growing vehicle electrification trends. We are confident our customers and channel partners will benefit from the strategic fit, as it brings together two long-standing industry leaders."