Standard Motor Products (NYSE:SMP), a leading automotive parts manufacturer and distributor, has announced a definitive agreement to acquire AX V Nissens III APS, a prominent European manufacturer known for its aftermarket engine cooling and air conditioning products.

The deal, valued at approximately $388 million (€360 million) in cash, will be purchased from the Nordic private equity firm Axcel and the Nissen family.

Nissens, which reports annual revenues of around $260 million and an EBITDA margin rate in the mid-teens, will continue to operate as a stand-alone unit.

The merger aims to harness the combined strengths of both companies to enhance cost efficiencies and revenue growth.

Eric Sills, Chairman and CEO of Standard Motor Products, expressed enthusiasm about the acquisition, stating it positions the company as the aftermarket leader in both North America and Europe for thermal management products.

The transaction, expected to close in the second half of 2024, is subject to customary closing conditions, including antitrust and other regulatory approvals.