Auto parts manufacturer BorgWarner has agreed a takeover deal to buy up shares in fellow supplier Remy International in a US$951m deal that values the firm at nearly US$1.2bn.
BorgWarner managed 2014 sales of US$8.3bn, and is known for its turbochargers and transmission parts. The Remy deal will improve its capacity to deal with the electrification of powertrains, with the Indiana-based firm specialising in alternators, starter motors and hybrid system components.
President and CEO of BorgWarner, James Verrier, said, “We look forward to welcoming Remy’s talented employees. Their products and capabilities will strengthen BorgWarner’s position in the rapidly developing powertrain electrification trend. The acquisition will be another step in executing our plan to profitably grow revenue to US$15bn by 2020.”
A series of high-profile takeover deals have been announced in recent weeks, with Magna International buying up transmissions firm Getrag for US$1.9bn and Japanese firm Horiba announcing a deal to buy the Mira testing facility in the UK for US$132m.