Standard Motor Products, Inc., a prominent manufacturer and distributor of automotive parts, recently announced the acquisition of Nissens Automotive, a well-established European supplier of engine cooling and air conditioning products in the aftermarket sector. The acquisition, valued at approximately $388 million, is anticipated to fortify Standard Motor Products’ standing in the global aftermarket parts supply industry.
Mr. Eric Sills, Chairman and CEO of Standard Motor Products, envisions the acquisition as a means to establish a global leader in aftermarket parts supply, offering a comprehensive range of products encompassing vehicle control and thermal control. Additionally, the acquisition is expected to broaden SMP’s portfolio of powertrain-neutral product categories, positioning the company for substantial growth in the first year following the transaction.
Projections indicate estimated run-rate cost synergies of approximately $8-12 million within 24 months, with further prospects for significant revenue synergies. Standard Motor Products aims to leverage the combined strengths of both entities to realize cost and revenue synergies, thereby driving growth through cross-selling product offerings and improving operational efficiency.
Mr. Klavs Pedersen, Nissens’ Chief Executive Officer, expressed enthusiasm about the company’s new ownership under SMP, noting a strong alignment in culture between both organisations. He believes that the acquisition will support and hasten the positive development of both companies, laying the foundation for a promising future in the industry.
The transaction, expected to be finalized in the latter half of 2024, is contingent upon certain closing conditions, including regulatory approvals. Standard Motor Products plans to convene a conference call on July 10, 2024, to provide further details and discuss the acquisition of Nissens Automotive.
With over a century of experience in the automotive aftermarket, Standard Motor Products, Inc. has earned a reputation for its unwavering commitment to quality and innovation. The acquisition of Nissens Automotive, with its global presence and diverse product portfolio, is poised to bolster the company’s position in the European market and beyond.
In an evolving automotive industry, strategic acquisitions and partnerships are crucial for companies seeking to broaden their offerings and enter new markets. Standard Motor Products’ decision to acquire Nissens Automotive underscores its dedication to expansion and its vision for the future of the aftermarket parts supply industry.
In summary, the acquisition of Nissens Automotive signifies a significant milestone for Standard Motor Products, Inc. With the complementary strengths of both entities and the potential for substantial synergies, this strategic move is poised to propel growth and elevate the company’s standing as a global leader in the automotive aftermarket.