PHINIA announced it has entered into a definitive agreement to acquire Swedish Electromagnet Invest AB (SEM). PHINIA will acquire all issued and outstanding shares of SEM. Founded in 1915, SEM supplies ignition systems for natural gas, hydrogen and other alternative fuels. The company also provides injector stators and linear position sensors. SEM primarily serves the commercial vehicle, industrial and off-highway markets.
Deal Terms Outlined in Definitive Agreement
Under the agreement, PHINIA will pay $47 million to acquire SEM. That is expected to generate approximately $50 million of annual revenue and approximately $10 million of annual adjusted EBITDA. PHINIA expects to close the deal in the third quarter of 2025. The transaction remains subject to customary closing conditions.
Strategic Goals Drive Acquisition
PHINIA expects the SEM acquisition to expand its product range and strategic options. This acquisition will help PHINIA pursue adjacent market opportunities. The company aims to offer more complete product and turnkey solutions. PHINIA also sees the acquisition as advancing its sustainability efforts. This move strengthens PHINIA’s position in alternative fuel technologies.
Leadership Emphasizes Long-Term Value
“SEM’s product portfolio complements PHINIA’s business by adding over a century of industrial experience and expertise in advanced ignition solutions for on- and off-road commercial and industrial engines,” said Brady Ericson, president and chief executive officer of PHINIA. “The acquisition aligns with PHINIA’s strategy of exploring alternative, carbon-neutral and carbon-free fuels, and expanding its presence in the commercial vehicle, industrial and aftermarket sectors. This positions PHINIA to lead the development of zero- and lower-carbon solutions, supporting our journey toward carbon neutrality.”
Complementary Technologies Strengthen Portfolio
PHINIA said the combined portfolios expand its technical offerings. PHINIA will integrate SEM’s ignition systems with its engine management system expertise. This combination strengthens PHINIA as a full system provider. The addition of ignition systems enhances PHINIA’s lineup of fuel components, electronics, software and calibration. The company added it sees new opportunities to optimize combustion and boost its value to customers.
Hydrogen Experience Supports Carbon-Free Vision
PHINIA and SEM both bring experience with hydrogen internal combustion systems. This expertise supports PHINIA’s path to a carbon-free future. The acquisition positions PHINIA to deliver high-performance, hydrogen-ready products across key markets, the company said.
