US automotive industry components and parts supplier BorgWarner is to acquire Remy International, a leading producer of rotating electrical components. With key technologies and operations in ten countries on five different continents, BorgWarner says Remy is strongly positioned to benefit from global growth.
“We look forward to welcoming Remy’s talented employees to BorgWarner. Their products and capabilities will strengthen BorgWarner’s position in the rapidly developing powertrain electrification trend,” said James Verrier, resident and CEO of BorgWarner. “The acquisition will be another step in executing our plan, to profitably grow revenue to US$15 billion by 2020.”
According to analysts6582 IDTechEx, the purchase reflects the increase in percentage value share of electrical and electronic parts in vehicles, accelerating as truly electric vehicles come in.
Dr Peter Harrop, chairman of IDTechEx and lead author of its reports on autonomous and electric vehicles and their new parts, says, “Both conventional and electric vehicles are going electrical and electronic. Mechanical parts are partly replaced, an example being electric traction motors needing little or no transmission provided they have sophisticated motor control electronics. Secondly, electrics and electronics are increasingly added to vehicles to provide new functions such as autonomy, multi-mode energy harvesting, including planned regenerative active suspension, and telematics, few of which replace anything directly. Primarily, they improve safety, economy and the driving experience.”
Under the terms of the agreement, BorgWarner will acquire each of the outstanding shares of Remy for $29.50 in cash, which implies an enterprise value of Remy of approximately US$1.2 billion. The transaction is expected to close in the fourth quarter of 2015.
“We look forward to welcoming Remy’s talented employees to BorgWarner. Their products and capabilities will strengthen BorgWarner’s position in the rapidly developing powertrain electrification trend,” said James Verrier, resident and CEO of BorgWarner. “The acquisition will be another step in executing our plan, to profitably grow revenue to US$15 billion by 2020.”
According to analysts
Dr Peter Harrop, chairman of IDTechEx and lead author of its reports on autonomous and electric vehicles and their new parts, says, “Both conventional and electric vehicles are going electrical and electronic. Mechanical parts are partly replaced, an example being electric traction motors needing little or no transmission provided they have sophisticated motor control electronics. Secondly, electrics and electronics are increasingly added to vehicles to provide new functions such as autonomy, multi-mode energy harvesting, including planned regenerative active suspension, and telematics, few of which replace anything directly. Primarily, they improve safety, economy and the driving experience.”
Under the terms of the agreement, BorgWarner will acquire each of the outstanding shares of Remy for $29.50 in cash, which implies an enterprise value of Remy of approximately US$1.2 billion. The transaction is expected to close in the fourth quarter of 2015.
