Standard Motor Products, Inc., a manufacturer and distributor of automotive parts, recently announced that it has acquired 100% of the equity of Trumpet Holdings, Inc., a Delaware corporation (more commonly known as "Trombetta"), for $108 million, subject to certain post-closing adjustments.
Trombetta is a specialist in providing power management and switching products to original equipment 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 majority ownership in a joint venture in Wuxi, China.
SMP will finance the acquisition in cash through loans under its revolving credit facility. We anticipate that the acquisition will increase profits in 2021.
Eric Sills, Chief Executive Officer and President of Standard Motor Products, said: "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 top-of-the-line original equipment customers through multiple commercial and off-road vehicle channels, including the heavy truck, construction, agriculture, electric vehicle and motorsport markets. This acquisition fits very well with our strategy of expanding beyond our core aftermarket business into related markets, and is highly complementary to our recent acquisition of Pollak.
"Trombetta's product portfolio includes well-established electromechanical parts, such as contactors and voltage regulators, along with state-of-the-art electronic components including various electronic controls and CAN bus-enabled devices. Importantly, few of Trombetta's products are related to the propulsion system and are therefore not affected by the change of internal combustion engines. We believe that in the future we will be able to leverage these technologies in our aftermarket business," added Eric Sills.
"This acquisition also provides us with an increased global manufacturing presence, additional engineering talent, a well-connected sales organization, and a strong and experienced 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 approximately 300 employees to the SMP family," concluded Sills.
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