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(RTTNews) - Standard Motor Products, Inc. (SMP), an automotive parts manufacturer and distributor, announced Wednesday that it has reached a definitive agreement to acquire AX V Nissens III APS for around $388 million or 360 million euros in cash from Nordic private equity firm Axcel and the Nissen family.

The deal is expected to be accretive to Standard Motor's GAAP earnings per share in the first full year.

The transaction is expected to be completed in the second half of 2024, subject to certain closing conditions, including receipt of applicable antitrust and other regulatory approvals.

Nissens, a European manufacturer and distributor of aftermarket engine cooling and air conditioning products, generated annual revenues of around $260 million with a mid-teens EBITDA margin rate.

Standard Motor said it plans to continue operating Nissens as a stand-alone unit.

Eric Sills, Standard Motor Products' Chairman and CEO, said the acquisition "will make our combined business the aftermarket leader in North America and Europe in thermal management products. It will also expand SMP's portfolio of powertrain-neutral product categories."

In the deal, J.P. Morgan Securities LLC is acting as financial advisor to Standard Motor. J.P. Morgan Bank N.A., Bank of America and Wells Fargo are providing committed financing for the funding of the transaction.

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