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Standard Motor (SMP) to Expand Portfolio With Nissens Buyout
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Standard Motor Products, Inc. (SMP - Free Report) , a manufacturer and distributor of automotive parts in the automotive aftermarket industry, announced a definitive agreement to acquire AX V Nissens III APS, a leading European manufacturer and supplier of aftermarket engine cooling and air conditioning products, for around $388 million in cash. Nissens, owned by Nordic private equity firm Axcel and the Nissen family, has annual revenues of about $260 million with a mid-teens EBITDA margin.
Per Eric Sills, chairman and CEO of Standard Motor, the acquisition will expand SMP’s range of powertrain-neutral products. The company intends to keep Nissens functioning as an independent unit while utilizing the combined strengths of both companies to achieve cost savings and increase revenues.
Both companies share a similar strategy of offering full-line, professional-grade products and have complementary portfolios while operating in different geographic markets. This merger is expected to strengthen SMP’s position, allowing for growth through cross-selling, cost reduction via combined resources and enhanced operational excellence.
The transaction values Nissens at about 7.5x adjusted EBITDA, considering estimated cost synergies of $10 million. The acquisition is expected to boost SMP’s GAAP EPS in the first full year and should be completed in the second half of 2024, pending regulatory approvals.
J.P. Morgan Securities LLC is the financial advisor, Hughes Hubbard & Reed LLP is the lead transaction counsel and Plesner Advokatpartnerselskab is the lead European counsel for Standard Motor Products. J.P. Morgan Bank N.A., Bank of America and Wells Fargo are providing financing for the deal.
The consensus estimate for SZKMY’s 2025 earnings suggests year-over-year growth of 2.09%. EPS estimates for 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for HMC’s 2025 sales and earnings suggests year-over-year growth of 0.73%. EPS estimates for 2025 have improved 9 cents in the past 60 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. EPS estimates for 2024 have moved up 2 cents in the past 60 days. The same for 2025 has moved up 20 cents in the past 30 days.
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Standard Motor (SMP) to Expand Portfolio With Nissens Buyout
Standard Motor Products, Inc. (SMP - Free Report) , a manufacturer and distributor of automotive parts in the automotive aftermarket industry, announced a definitive agreement to acquire AX V Nissens III APS, a leading European manufacturer and supplier of aftermarket engine cooling and air conditioning products, for around $388 million in cash. Nissens, owned by Nordic private equity firm Axcel and the Nissen family, has annual revenues of about $260 million with a mid-teens EBITDA margin.
Per Eric Sills, chairman and CEO of Standard Motor, the acquisition will expand SMP’s range of powertrain-neutral products. The company intends to keep Nissens functioning as an independent unit while utilizing the combined strengths of both companies to achieve cost savings and increase revenues.
Both companies share a similar strategy of offering full-line, professional-grade products and have complementary portfolios while operating in different geographic markets. This merger is expected to strengthen SMP’s position, allowing for growth through cross-selling, cost reduction via combined resources and enhanced operational excellence.
The transaction values Nissens at about 7.5x adjusted EBITDA, considering estimated cost synergies of $10 million. The acquisition is expected to boost SMP’s GAAP EPS in the first full year and should be completed in the second half of 2024, pending regulatory approvals.
J.P. Morgan Securities LLC is the financial advisor, Hughes Hubbard & Reed LLP is the lead transaction counsel and Plesner Advokatpartnerselskab is the lead European counsel for Standard Motor Products. J.P. Morgan Bank N.A., Bank of America and Wells Fargo are providing financing for the deal.
Zacks Rank & Key Picks
SMP currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Suzuki Motor Corporation (SZKMY - Free Report) , Honda Motor Co., Ltd. (HMC - Free Report) and American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for SZKMY’s 2025 earnings suggests year-over-year growth of 2.09%. EPS estimates for 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for HMC’s 2025 sales and earnings suggests year-over-year growth of 0.73%. EPS estimates for 2025 have improved 9 cents in the past 60 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. EPS estimates for 2024 have moved up 2 cents in the past 60 days. The same for 2025 has moved up 20 cents in the past 30 days.