Seeking to expand its electric car parts business, BorgWarner says it will buy Remy for $951M

Auto parts supplier BorgWarner says it will buy Remy International for $950.8 million, or $29.50 per share, to boost its ability to make parts for electric cars.

BorgWarner makes powertrain components, and Remy is a maker and remanufacturer of alternators, starter motors and electric traction motors. The companies valued the sale at $1.2 billion and say they expect it to close during the fourth quarter.

Remy said the sale will help it market its products to a broader range of companies.

BorgWarner is offering a 44-percent premium to the latest closing price of Remy International Inc. shares. The stock surged jumped $8.63, or 42 percent, to $29.16 in midday trading, reaching its highest prices in seven and a half years.

Auburn Hills, Michigan-based BorgWarner reported $8.31 billion in sales in 2014 and said it aims to get to $15 billion in revenue by 2020. Remy International had $1.18 billion in sales last year and the Pendleton, Indiana-based company has about 6,600 employees, compared to 22,000 for BorgWarner.

Shares of BorgWarner Inc. gained 54 cents to $54.17 in midday trading.