Premium fuel systems and aftermarket solutions firm Phinia has acquired Swedish Electromagnet Invest (SEM) for Skr452m ($47m).
SEM, established in 1915, specialises in advanced natural gas, hydrogen, and other alternative fuel ignition systems, primarily for the commercial vehicle and industrial markets.
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In June 2025, Phinia signed a definitive agreement to acquire the SEM’s issued and outstanding shares.
The acquisition is set to bolster Phinia’s portfolio in alternative fuel technologies and is anticipated to generate around $50m of annual revenue as well as nearly $10m of annual adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA).
Phinia will integrate SEM’s expertise in advanced ignition technologies for both on- and off-road commercial and industrial engines.
The acquisition is expected to enhance Phinia’s product portfolio and strategy, enabling the company to explore adjacent market opportunities and provide customers with a broad range of products and turnkey solutions.
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By GlobalDataPhinia CEO and president Brady Ericson said: “We’re genuinely excited about what lies ahead. This acquisition opens new possibilities through the strategic expansion of our portfolio.
“By combining Phinia’s expertise in engine management systems with SEM’s deep knowledge of advanced ignition technologies, we expect to create a powerful platform for innovation and efficiency.”
For second quarter (Q2) 2025, Phinia reported net sales of $890m, marking a 2.5% year-over-year increase, and adjusted earnings per share (EPS) of $1.27 per share.
Phinia concluded the quarter with cash and cash equivalents of $347m and $499m of available capacity under its revolving credit facility. The company’s total debt was reported at $990m.
Adjusted free cash flow also saw a decline, coming in at $20m, which is a significant drop from the $108m reported in the Q2 2024.
This decline was largely attributed to higher working capital demands, which arose as the company dealt with changing order volumes and other dynamic conditions within the industry, as well as the timing of its capital spending.
Phinia updated its financial outlook for the year, now expecting net sales to be between $3.33bn and $3.43bn.
