Remy International has announced its financial results for the second quarter ended June 30, 2015.
The company reported net sales of $272 million for the second quarter of 2015, compared to $302.9 million for the second quarter of 2014. The company said the decrease in net sales was driven by decreased volume and mix of $28.4 million, a negative pricing impact of $2.9 million, and unfavorable foreign currency translation of $9.2 million. The net sales decrease was partially offset by $9.7 million in second quarter sales of Maval, which we acquired in March 2015.
Remy reported a quarterly net loss of $1 million in the second quarter of 2015, compared to prior year, due to lower volume/mix, currency translation, restructuring costs and $1.2 million expense for professional fees related to the Maval acquisition and the pending BorgWarner transaction.
Jay Pittas, Remy president and CEO, commented, “We performed as expected in the second quarter. As we had previously stated, the first half of 2015 presented challenging comparisons to 2014, primarily due to the loss of a major retail customer in the automotive aftermarket. We continue to expect improved performance going forward.”
On July 12, Remy entered into a definitive agreement to be acquired by BorgWarner Inc. The merger agreement provides that at the effective time of the merger, if it occurs, each of the outstanding shares of Remy common stock (other than certain shares owned by BorgWarner, Remy and their respective subsidiaries, and shares that are owned by Remy stockholders who have perfected and not withdrawn a demand for appraisal rights pursuant to Delaware law) will be cancelled and converted into $29.50 in cash, without interest. The completion of the transaction is subject to the approval of Remy stockholders as well as certain customary terms and conditions, including antitrust and other regulatory clearances in the U.S. and abroad. Assuming timely satisfaction of the closing conditions, the transaction is expected to close during the fourth quarter of 2015.
