Standard Motor Products has completed the acquisition of Nissens Automotive, a Denmark-based manufacturer and supplier of engine cooling and air conditioning products, from private equity firm Axcel.
The deal, valued at approximately $390m (€360m) net of cash and assumed debt, also includes Nissens’ vehicle control technologies.
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Nissens is a supplier of thermal management and engine efficiency products, serving the independent automotive aftermarket.
The company uses a multi-brand strategy for passenger car and commercial vehicle applications.
The deal is expected to bolster Standard Motor Products’ offerings in the automotive aftermarket, particularly in the vehicle control and temperature control segments.
Standard Motor Products chairman and CEO Eric Sills stated: “We are very pleased to announce the closing of the Nissens acquisition. With this combination, we create an aftermarket leader in North America and Europe across our key product categories.
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By GlobalData“The strength of Nissens’ leadership team and overall cultural fit will allow for immediate collaboration on opportunities for growth through cross-selling as well as bi-directional synergies with significant savings potential. We welcome Nissens and its employees to the SMP family.”
The transaction values Nissens at 7.5x adjusted EBITDA, factoring in $10m in estimated cost synergies.
Nissens generates around $260m in annual revenue, with an EBITDA margin in the mid-teens.
J.P. Morgan Securities served as the financial advisor, while Hughes Hubbard & Reed was the lead transaction counsel and Plesner Advokatpartnerselskab acted as the lead European counsel for Standard Motor Products.
Committed financing for the transaction was provided by J.P. Morgan Bank N.A., Bank of America, and Wells Fargo.
Standard Motor Products is a manufacturer and distributor of replacement parts in the automotive aftermarket, with two main segments: vehicle control and temperature control.
It also offers custom-engineered solutions for various sectors, including commercial vehicles, construction, and agriculture, providing a range of conventional and innovative technologies.
