United States. Standard Motor Products (SMP) The European Commission announced that it has entered into a definitive agreement to acquire AX V Nissens III APS (Nissens), a European manufacturer and distributor of refrigeration and air conditioning products for aftermarket engines.
Nissens has annual revenues of approximately $260 million with an EBITDA margin of 15 to 19%.
Eric Sills, President and Chief Executive Officer of Standard Motor Products, said, "We are delighted to announce this acquisition, which will make our combined company the aftermarket leader in North America and Europe in thermal management products. It will also expand SMP's product portfolio for neutral propulsion systems."
Klavs Pedersen, CEO of Nissens, said: "We are very pleased that SMP will be our new owner. We have been following SMP's activities in the U.S. and see many similarities in the way SMP and Nissens operate in their respective regions of focus. I have personally known the SMP management team for several years and believe that there is a strong cultural compatibility that will support and accelerate the positive development of both companies. We look forward to becoming part of the SMP family."
Founded in 1921, Nissens has a long history in the aftermarket in Europe, with brand recognition in the market and a reputation as a high-performance supplier of premium products. Led by Klavs Pedersen, the Nissens management team has demonstrated its ability to grow and thrive in challenging times. They enjoy a deep understanding of the market with strong customer relationships and an operational infrastructure that has allowed them to penetrate every corner of the continent and beyond.
The transaction values Nissens at approximately $388 million, representing approximately 7.5 times adjusted EBITDA after accounting for estimated cost synergies at the midpoint of $10 million. The transaction is expected to accrete SMP's GAAP earnings per share (EPS) in the first full year.
The companies expect the transaction to be completed in the second half of 2024 and is subject to certain closing conditions, including receipt of antitrust and other corresponding regulatory approvals.
