An investor group led by Torque Capital Group has signed a definitive agreement to acquire the North American and European light vehicle aftermarket business of Remy Inc. from BorgWarner Inc.
The business includes the North American light vehicle rotating electrical remanufacturing business, the North American power steering business (Maval Industries) and the European light and medium duty rotating electrical remanufacturing business. The transaction is subject to certain customary closing conditions and is expected to close in the fourth quarter.
Joseph Parzick, managing partner of Torque Capital, said, “We are delighted to partner with the management of Remy to support them in their transition to an independent, aftermarket customer-focused business. The Remy brand is recognized worldwide for its quality, technology and reliability. There are many similarities between Remy and our existing portfolio company Brake Parts Inc (“BPI”), including our relentless focus on delivering value to our customers through superior product quality, new product innovation, high product fill rates and competitive pricing. Both Remy and BPI manufacture the vast majority of everything they sell, which we believe is a critical element to providing our customers with excellent service. We believe both Remy and BPI will benefit from the relationship, including the sharing of best practices and market insights.”
Dave Nichols, senior vice president of sales and general manager at Remy, said, “We welcome the Torque Capital investment group and see their investment in us as validation of our focused aftermarket growth strategy. We admire what they have accomplished at Brake Parts Inc and look forward to working with them as we continue to drive efficiencies at Remy and enhance our customer value proposition.”
David Overbeeke, president and CEO of Brake Parts Inc and part of the investor group, commented, “The Remy brand embodies the same heritage and core values as represented by the Raybestos brand, including integrity, product quality and customer focus. I believe these values are the essential underpinnings of a successful business. I look forward to working with the Remy team as we pursue the enhancements of the Remy business.”
The North American rotating electrical business is a market leader in the remanufacturing of a full line of domestic and imported starters and alternators for passenger cars and light duty trucks. The company sells its products under the Remy name as well as a variety of private label brands in support of its customers. The company manufactures its products in San Luis Potosi, Mexico and Piedras Negras, Mexico and distributes them throughout the U.S., Canada and Mexico from its network of warehouses.
Maval is a market leader in the steering and suspension business, serving both aftermarket and original equipment customers from its facility in Twinsburg, Ohio.
Remy Europe is also a market leader in the remanufacturing of rotating electrical products for light and medium duty vehicles, utilizing an “all makes all models” approach to servicing its customers across Europe and North Africa. It manufactures its products in Miskolc, Hungary and Menzel Harb, Tunisia.
Torque Capital is a New York-based private equity investment firm founded by Joseph Parzick and Jonathan Saltzman in 2010.
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