Remy Agrees To Be Bought By BorgWarner In a $1.2 Billion Deal

Remy International Inc. announced on Monday a deal to be acquired by BorgWarner Inc. in a deal that values the vehicle motors maker at $1.2 billion. As part of the deal, BorgWarner will pay $29.50 in cash for each Remy share outstanding, which represents a 44% premium to Friday's closing price of $20.53. The deal is expected to close in the fourth quarter. "Our products and capabilities should complement BorgWarner very well and support growing vehicle electrification trends," said Remy Chief Executive Jay Pittas. "We are confident our customers and channel partners will benefit from the strategic fit, as it brings together two long-standing industry leaders." Remy's, which is currently halted for news dissemination, has lost 8.4% over the past three months, while the S&P 500 has slipped 0.8%. BorgWarner's stock, which was still inactive premarket, has shed 11% over the past three months.