Standard Motor to acquire Nissens Automotive for ~$388M in cash

Standard Motor Products announced it has reached a definitive agreement to acquire AX V Nissens III APS, a European manufacturer and distributor of aftermarket engine cooling and air conditioning products with a growing array of vehicle control technologies, for approximately $388M in cash from Nordic private equity firm Axcel and the Nissen family. Nissens has annual revenues of approximately $260M with a mid-teens EBITDA margin rate. The transaction values Nissens at approximately $388M, representing approximately 7.5x Adjusted EBITDA after factoring estimated run-rate cost synergies at the mid-point of $10M. The transaction is expected to be accretive to SMP‘s GAAP EPS in the first full year. The transaction is expected to be completed in the second half of 2024, and is subject to certain closing conditions, including receipt of applicable antitrust and other regulatory approvals.