New York, New York – Standard Motor Products Inc., an aftermarket automotive parts company, is moving into OEM supply with the purchase of General Cable Corp.‘s automotive ignition wire business for approximately $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 – divisions with $96 million in 2015 sales.
The transaction is expected to close in the near future. The integration process of the acquired business will take approximately 12-18 months.
Eric Sills, Standard Motor Products’ president and CEO, says, “General Cable supplies 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.”
General Cable President and CEO Mike McDonnell says his company sold the division to focus on other industries.
“We are executing our new strategic roadmap, and a key component of the roadmap is focusing and optimizing our portfolio of businesses,” McDonnell says. “While the automotive ignition wire business has been a strong performing business for us over the years, we determined through our strategic review that it is not aligned with our strategic and financial criteria going forward. As previously communicated, we are focused on growing our businesses in the electric utility, communications and industrial markets where we have leading positions, scale and sustainable profitability.”
Sources: General Cable Corp.; Standard Motor Products Inc.