NEW YORK, June 1, 2021 /PRNewswire/ -- Standard Motor
Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer
and distributor, announced today that it has acquired 100% of the
capital stock of Trumpet Holdings, Inc., a Delaware corporation (more commonly known as
"Trombetta"), for $108 million,
subject to certain post-closing adjustments. Trombetta is a
worldwide leader in providing power switching and power management
products to OE customers in various markets. Trombetta generates
approximately $60 million in annual
revenue, and has manufacturing facilities in Milwaukee, Wisconsin, Sheboygan Falls, Wisconsin, and Tijuana, Mexico, as well as a majority
ownership in a joint venture in Wuxi, China.
SMP will fund the acquisition in cash through borrowings under
its revolving credit facility. We anticipate the acquisition will
be accretive to earnings in 2021.
Mr. Eric Sills, Standard Motor
Products' Chief Executive Officer and President, stated, "We are
very pleased to announce this acquisition. Founded in 1932,
Trombetta has a long history of supplying high-quality products to
a broad group of blue-chip OE customers across multiple commercial
vehicle and off-highway channels, including heavy truck,
construction, agricultural, electric vehicle and power sports
markets. This acquisition fits very well with our strategy to
expand beyond our core aftermarket business into related markets,
and is highly complementary with our recent Pollak acquisition.
"Trombetta's product portfolio includes well-established
electromechanical parts such as contactors and voltage regulators,
along with cutting edge electronic components including various
electronic controls and CAN bus-enabled devices. Importantly, few
of Trombetta's products are powertrain-related and thus are
unaffected by the shift from internal combustion engines. We
believe that in the future we will be able to leverage these
technologies in our aftermarket business.
"This acquisition also provides us with an increased global
manufacturing footprint, additional engineering talent, a
well-connected sales organization, and a strong and seasoned
leadership team. We believe that the combination of Trombetta,
along with the business we have already built in these markets,
will create a critical mass that can be a powerful force for
growth. It will also provide enhanced capabilities for SMP's
core aftermarket business. We welcome Trombetta and its roughly 300
employees to the SMP family."
Under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, Standard Motor Products cautions
investors that any forward-looking statements made by the company,
including those that may be made in this press release, are based
on management's expectations at the time they are made, but they
are subject to risks and uncertainties that may cause actual
results, events or performance to differ materially from those
contemplated by such forward-looking statements. Among the factors
that could cause actual results, events or performance to differ
materially from those risks and uncertainties discussed in this
press release are those detailed from time-to-time in prior press
releases and in the company's filings with the Securities and
Exchange Commission, including the company's annual report on Form
10-K and quarterly reports on Form 10-Q. By making these
forward-looking statements, Standard Motor Products undertakes no
obligation or intention to update these statements after the date
of this release.
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SOURCE Standard Motor Products, Inc.