Standard Motor Products forms joint venture, acquires Annex Manufacturing
Standard Motor Products formed a joint venture with Gwo Yng Enterprise Co. Ltd., a China-based manufacturer of air conditioning accumulators, filter driers, hose assemblies and switches for the automotive aftermarket and the OEM/OES markets. Standard Motor Products will invest $14 million in the 50/50 joint venture.
In addition, Standard Motor Products announced the acquisition of assets of Annex Manufacturing, a privately held company, for approximately $11.5 million. Annex, located in Fort Worth, Texas, distributes a variety of temperature control products for the automotive aftermarket.
Revenue of Annex Manufacturing was approximately $22 million in 2013. Standard represents approximately 40% of the volume.
Lawrence I. Sills, Standard Motor Products' Chairman and Chief Executive Officer, said, "We are very pleased to announce the formation of the Gwo Yng joint venture and the acquisition of Annex. Both Gwo Yng and Annex have been excellent suppliers to us of temperature control products for several years. We anticipate that, after a transition period, the Annex operations will be relocated to an existing SMP facility. We believe that these transactions will enhance our position as a basic manufacturer and a leading supplier of temperature control parts to the aftermarket. We welcome them into the Standard family. We believe the transactions will be accretive to earnings in year one, excluding one-time integration costs."
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