AUBURN HILLS–Officials at the fuel and electrical systems auto supplier Phinia Inc. (NYSE: PHIN) announced that the company would acquire all the stock of Swedish Electromagnet Invest AB, known as SEM, a manufacturer of natural gas, hydrogen and other alternative fuel ignition systems, injector stators and linear position sensors primarily for the commercial vehicle, industrial, and off-highway markets.
Under the terms of the agreement, Phinia will pay $47 million (452 million Swedish krona) for the acquisition of SEM, which is expected to generate approximately $50 million of annual revenue and approximately $10 million of annual adjusted earnings before interest, taxes, depreciation and amortization. The deal is expected to close by Sept. 30.
Officials at Phinia said the deal would enhance its product portfolio and stratey, giving cusotmers a wider range of products, while strengthening the company’s commitment to sustainability and alternative fuels.
“SEM’s product portfolio complements Phinia’s business by adding over a century of industrial experience and expertise in advanced ignition solutions for on- and off-road commercial and industrial engines,” said Brady Ericson, Phinia president and CEO. “The acquisition aligns with Phinia’s strategy of exploring alternative, carbon-neutral, and carbon-free fuels, and expanding its presence in the commercial vehicle, industrial, and aftermarket sectors. This positions Phinia to lead the development of zero- and lower-carbon solutions, supporting our journey towards carbon neutrality.”
Company officials said that in particular, the combination of Phinia’s engine management system experience and SEM’s significant experience with advanced ignition systems strengthens Phinia’s position as a full system provider. Both organizations’ demonstrated experience with hydrogen internal combustion creates additional value as Phinia prepares for a carbon-free future by providing robust, high-performance products to the market.
Phinia’s brands nclude Delphi, Delco Remy and Hartridge. The company has more than 12,500 employees across 43 locations in 20 countries. More at www.phinia.com.