BorgWarner says it will acquire rotating electrical component company, Remy International with outstanding sharers valued at US$29.50, implying an enterprise value of US$1.2bn.

Remy has technologies and operations in ten countries on five different continents and as of 31 December, 2014 the company employed 6,600 people and, for the fiscal year, generated sales of US$1.2bn.

“We look forward to welcoming Remy’s talented employees to BorgWarner,” said BorgWarner CEO, James Verrier. “Their products and capabilities will strengthen BorgWarner’s position in the rapidly developing powertrain electrification trend.

“The acquisition will be another step in executing our plan, to profitably grow revenue to US$15bn by 2020.”

BorgWarner adds it has identified “purchasing efficiencies” and “redundant public company expenses,” as well as other cost synergies and “numerous opportunities” to accelerate growth through the combined business.

The transaction is expected to be accretive to earnings in the first year and is subject to certain customary terms and conditions, including the approval of Remy’s stockholders and antitrust and other regulatory clearances in the US and abroad.

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The transaction is expected to close in the fourth quarter of 2015.