BorgWarner announced that it has entered into a definitive agreement to acquire Remy International, Inc., a global producer of rotating electrical components.

With key technologies and operations in 10 countries on five different continents, Remy is positioned to benefit from global growth. As of December 31, 2014, the company employed 6600 people and, for the fiscal year, it generated sales of $1.2 billion.

Under terms of the agreement, BorgWarner will acquire each of the outstanding shares of Remy for $29.50 in cash, which indicates an enterprise value of Remy of approximately $1.2 billion.

BorgWarner has identified purchasing efficiencies, redundant public company expenses, 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.