Standard Motor Products says it has invested US$14m in a 50:50 joint venture with Gwo Yng Enterprise Co, a China-based manufacturer of air conditioning accumulators, filter driers, hose assemblies and switches for the automotive aftermarket as well as the OEM/OES sectors.
In addition, Standard Motor Products announced the acquisition of assets of Annex Manufacturing, a privately-held company, for around US$11.5m.
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Annex, located in Fort Worth, Texas, distributes a variety of temperature control products for the automotive aftermarket.
Annex Manufacturing revenue was around US$22m in 2013, with Standard representing 40% of the volume.
“Both Gwo Yng and Annex have been excellent suppliers to us of temperature control products for several years,” said Standard Motor Products chairman and CEO, Lawrence Sills.
“We anticipate that, after a transition period, the Annex operations will be relocated to an existing SMP facility.
“We believe these transactions will enhance our position as a basic manufacturer and a leading supplier of temperature control parts to the aftermarket.
“We believe the transactions will be accretive to earnings in year one, excluding one-time integration costs.”
