Remy International, Inc. (NASDAQ: REMY) announced that it has signed a definitive share purchase agreement with its Chinese joint venture partner, Hubei Super Electric Auto Motor Co. Ltd. (“HSE”), to acquire the remaining 49% of the Remy Hubei Electric Co. Ltd. (“REH”) joint venture. This joint venture was originally formed by Delphi Automotive Systems China Ltd. (“Delphi”) with HSE in 1994. In 2004, Remy acquired a 51% ownership of REH as part of Remy’s purchase of Delphi’s light duty alternator business.
Jay Pittas, Remy International, Inc. President and CEO commented, “This is an important milestone within our global strategic plan. Over the next several years, more than half the growth in the global light vehicle market and an even higher percentage of growth in global commercial vehicle market will come from China. The REH acquisition, in combination with our investment in Wuhan, more than doubles our existing alternator capacity and significantly expands our starter business. The payoff from these investments is already being realized as we win new business that will significantly expand our starter and alternator share of the China vehicle market.”
Ed Neiheisel, Remy International, Inc. Senior Vice President & Chairman China Group added, “We are very pleased to have entered into an agreement to acquire full ownership of our REH joint venture. We have filed for the requisite government approvals and expect to close the transaction in the next 30 days. Once this transaction closes, our operations in Wuhan and Jingzhou, which are located in the rapidly developing center of China, will provide a very strong base to satisfy the growing demand for both passenger and commercial vehicle manufacturers in China.”
