BMW said because of the transformation to electromobility and increasing legal requirements, the risks for small-series manufacturers are increasing.
Acquiring Alpina will allow BMW to shape the long-term course of the brand as the industry goes through a far-reaching transformation toward sustainable mobility, BMW sales chief Pieter Nota said in a statement.
Under the deal, BMW will manage the Alpina brand and refine vehicles. Alpina will continue to operate the maintenance and spare parts business for current and historic BMW Alpina cars.
Alpina vehicles are pre-assembled on BMW production lines and final assembly takes place in workshops in Buchloe. Alpina's extensive modifications include tuning engines and transmissions, as well as tweaking the chassis, aerodynamics, and individual interiors to customer specifications.
BMW said there would be no changes to existing aftersales operations, and there will be an expansion of existing development services for BMW out of Buchloe.
"We recognized the challenges facing the automotive industry early on and are now setting the right course for Alpina and for our family firm, Bovensiepen," said Andreas Bovensiepen, co-managing director of Alpina Burkard Bovensiepen.
"We made a conscious decision not to sell Alpina to just any manufacturer, because BMW and Alpina have worked together and trusted one another for decades," Bovensiepen said.
Alpina said the deal will have "implications" for employees at the Buchloe site.
By the end of 2025, BMW intends to offer some Alpina employees new jobs at BMW or help arrange new employment with partner or supplier companies.
Alpina has been active in BMW tuning and motorsports from the 1960s onwards and began manufacturing passenger cars based on BMW products starting in 1978.