Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, announced today that it has acquired 100% of the capital stock of Kade Trading GmbH, headquartered in Glinde, Germany. Founded in 2004, the company has operated across Europe as a supplier of mobile temperature control components to commercial vehicle, passenger car and specialty equipment markets, and has been a distributor of SMP products including electric compressors, hose assemblies and receiver dryers. The company generated approximately $6 million in annual revenue during 2021. SMP will fund the acquisition in cash through borrowings under its revolving credit facility.
Mr. Eric Sills, Standard Motor Products’ Chief Executive Officer and President, stated, “We are pleased to announce the acquisition of Kade Trading and to welcome the employees to the SMP family. Their well-established customer relationships further strengthen our overall presence in Europe, and provides synergies to our other recent specialized non-aftermarket channel acquisitions. Furthermore, this acquisition will provide SMP with an entry point into the European market for our temperature control products with a strong focus on the continuing electrification of thermal systems.
“While still a relatively small business, we believe product categories such as electric compressors along with new complementary specialized products will expand market penetration into the EV segment as the demand throughout Europe evolves over time.”