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In a move that will expand its business in the European market, Standard Motor Products, Inc. announced it had acquired Nissens.
The deal is valued at US$388 million and will be an all-cash transaction, facilitated through a definitive agreement with Nordic private equity firm Axcel and the Nissen family.
“We are delighted to announce this acquisition, which will make our combined business the aftermarket leader in North America and Europe in thermal management products,” Eric Sills, SMP’s chairman and CEO said in the announcement. “It will also expand SMP’s portfolio of powertrain-neutral product categories.”
Nissens, founded in 1921, will continue running as a stand-alone business. However, Sills noted that they will look to leverage the combined strengths of the companies to find cost and revenue synergies.
Nissens is a European manufacturer and distributor of aftermarket engine cooling and air conditioning products, with annual revenues of about $260 million. The announcement noted that CEO Klavs Pedersen has led the company through resilience and growth, gaining deep market knowledge and customer relationships across Europe.
“We believe the combination with SMP is a powerful one. Both companies have a similar go-to-market strategy of supplying full-line professional-grade product offerings and enjoy complementary product portfolios,” Sills said. “Together, we can accelerate growth through cross-selling our product offerings, realize cost reduction through combined resources, and achieve enhanced operational excellence through collaboration and best practices.”
Pedersen expressed enthusiasm about the acquisition, saying he has watched SMP from a distance and sees similarities in the way both operate.
“I have personally known the SMP management team for several years, and I believe there is a very strong cultural fit that will support and accelerate the positive development of both companies,” he said.
The deal is set to be completed in the second half of 2024, pending certain closing conditions and regulatory approvals.
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