The acquisition costs SMP USD 71 million and will include General Cable’s auto-motive ignition wire business in North America as well as a subsidiary in Mexico
May 23, 2016
Standard Motor Products, Inc, an automotive replacement parts manufacturer and distributor, announced on May 23 that it has signed a definitive agreement to acquire General Cable Corporation’s automotive ignition wire business for approximately USD 71 million, subject to post-closing adjustments. The acquisition will include the purchase of General Cable’s automotive ignition wire business in North America as well as a subsidiary in Mexico. 2015 sales volume for this business was approximately USD 96 million.
SMP will fund the acquisition, as well as the one-time costs for acquisition and integration expenses, in cash through borrowings under its revolving credit facility. The transaction is expected to close in the near future. The integration process of the acquired business will take approximately 12-18 months.
Mr. Eric Sills, Standard Motor Products’ Chief Executive Officer and President, stated, “We are very pleased to announce this acquisition. General Cable is a fine company with a long and successful history in this field. They supply some of the most prestigious customers in the industry. Our goal will be to maintain the best features of both companies to become the best possible ignition wire supplier to all General and SMP customers.
“We believe the acquisition will be accretive to earnings in year one, excluding one-time integration costs.”
