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AUBURN HILLS, Mich. - PHINIA Inc. (NYSE: PHIN), known for its premium fuel and electrical system solutions, has announced a definitive agreement to acquire Swedish Electromagnet Invest AB (SEM), a company specializing in alternative fuel ignition systems. The acquisition, valued at $47 million, represents a strategic move for PHINIA, which currently maintains a strong financial position with a market capitalization of $1.73 billion. According to InvestingPro data, the company’s liquid assets exceed its short-term obligations, with a healthy current ratio of 1.85.
The transaction, which is expected to close in the third quarter of 2025, will see PHINIA purchasing all issued and outstanding shares of SEM. The Swedish firm, with a history dating back to 1915, brings to the table expertise in natural gas, hydrogen, and other alternative fuel technologies, primarily serving the commercial vehicle and off-highway markets.
PHINIA anticipates that the acquisition will generate around $50 million in annual revenue and $10 million in annual adjusted EBITDA. This strategic move is aimed at bolstering PHINIA’s commitment to sustainability and positioning the company as a key player in the shift towards alternative fuel technologies.
Brady Ericson, President and CEO of PHINIA, stated that SEM’s product portfolio complements PHINIA’s business, adding a century of industrial experience in advanced ignition solutions. He emphasized that the acquisition aligns with PHINIA’s strategy to explore carbon-neutral and carbon-free fuels and expand its presence in various sectors.
The merger of PHINIA and SEM’s portfolios is expected to broaden the range of technical solutions PHINIA can offer its customers, particularly by combining PHINIA’s Engine Management System experience with SEM’s advanced ignition systems. This positions PHINIA to lead in developing zero- and lower-carbon solutions.
PHINIA, with over 12,500 employees across 43 locations in 20 countries, has been a prominent provider in the automotive and industrial sectors for over a century. The company aims to maintain combustion engines’ peak performance while simultaneously investing in technologies for alternative fuels.
This acquisition is subject to customary closing conditions, and the information is based on a press release statement from PHINIA Inc.
In other recent news, Phinia Inc. reported its Q1 2025 earnings, revealing an adjusted earnings per share (EPS) of $0.94, which fell short of the anticipated $1.18. The company’s revenue for the quarter was $796 million, marking a 7.8% decline from the previous year. Despite these results, Phinia reaffirmed its full-year 2025 guidance. The company also declared a quarterly cash dividend of $0.27 per share, scheduled to be paid on June 16, 2025. In corporate governance news, Phinia Inc. held its annual meeting, resulting in the election of eight directors and the approval of executive compensation and the ratification of PricewaterhouseCoopers LLP as the independent auditor. Additionally, Phinia has been actively securing new business contracts, including significant wins in Brazil, China, and the Americas. Lastly, Phinia’s recent SEC filing confirmed the voting outcomes from the annual meeting, reflecting shareholder confidence in the company’s governance practices.
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