Standard Motor Products buys Trombetta
By Chad Elmore03 June 2021
SMP adds Trombetta product line to a growing list of components.
Standard Motor Products Inc., an automotive parts manufacturer and distributor, announced 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 provider of 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 and Sheboygan Falls, Wis., 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.
“We are very pleased to announce this acquisition,” said Eric Sills, Standard Motor Products’ CEO and president, based in New York City. “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 CANbus-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.”
The company has been busy. In March it acquired certain assets and liabilities of the particulate matter sensor business of Stoneridge Inc., which had manufacturing lines in Lexington, Ohio, and Tallinn, Estonia, and generates approximately $14 million in annual revenue. SMP said it would relocate all production to existing SMP locations, and is not acquiring any of Stoneridge’s locations or employees. The business would likely be fully integrated within 12 months.
In April 2019, SMP acquired certain assets and liabilities of the Pollak business of Stoneridge for approximately $40 million, subject to post-closing adjustments. The Pollak business has manufacturing and distribution facilities in Canton, Mass., El Paso, Texas, and Juarez, Mexico, and distributes a range of engine management products including sensors, switches, and connectors. 2018 net sales volume for this business was approximately $45 million. The company moved all Pollak production to existing SMP locations.