BorgWarner to sell REMY light vehicle aftermarket business to Torque Capital
BorgWarner has agreed to sell its REMY light vehicle aftermarket business to an investor group led by Torque Capital Group. The sale includes manufacturing facilities in San Luis Potosi, Mexico; Piedras Negras, Mexico; Twinsburg, Ohio; Edmond, Oklahoma; Brussels, Belgium; Jemmal, Tunisia; and Miskolc, Hungary. The business employs a total of approximately 3,000 people. The purchase price of the transaction is approximately $80M, subject to customary adjustment. Completion of the transaction is expected in the fourth quarter, subject to the satisfaction of customary closing conditions. Sales of this light vehicle aftermarket business through the first six months of 2016 were approximately $142M. BorgWarner will retain the core rotating electric business of the former REMY International, Inc. to complement its focus on hybrid and electric vehicle propulsion systems. This transaction does not include other BorgWarner products or technologies including the DELCO REMY commercial vehicle products. As a result of the transaction, including the write-off of excess purchase price allocation related to the 2015 acquisition of the former REMY International, BorgWarner estimates that it will incur a 2016 pre-tax loss of approximately $95M-125M, subject to final closing adjustments.