Global auto parts supplier BorgWarner (NYSE:BWA) has agreed to buy motor manufacturer Remy International (NASDAQ: REMY) for about $950 million in cash. The offer of $29.50 a share represents a 44% premium to Remy’s Friday closing price. The deal is expected to close in the fourth quarter of 2015.
Both companies have histories in the EV scene. BorgWarner, which specializes in transmissions and turbocharging technology, supplied the single-speed gearbox for the Tesla Roadster. Indiana-based Remy boasts the largest hybrid motor production and testing facility in North America. It also supplies motors for several aftermarket EV builders, including VIA Motors and Quantum Fuel Systems.
“This transaction…provides an opportunity to market our products to a much broader and diverse group of original equipment manufacturers,” said Remy International Chairman John H. Weber. “The product and technology synergies are obvious, resulting from each company’s historical focus on separate areas of the global powertrain market.”
“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,” added CEO Jay Pittas.