Auburn Hills, Michigan, June 10, 2025 – PHINIA Inc. (NYSE: PHIN), a leader in premium fuel systems, electrical systems, and aftermarket solutions, today announced it has entered into a definitive agreement for PHINIA to acquire all of the issued and outstanding shares of Swedish Electromagnet Invest AB (publ) (“SEM”). Founded in 1915, SEM is a prominent provider of advanced natural gas, hydrogen and other alternative fuel ignition systems, injector stators and linear position sensors primarily for the commercial vehicle, industrial, and off-highway markets.

Under the terms of the agreement, PHINIA will pay $47 million (452 million Swedish krona) for the acquisition of SEM, which is expected to generate approximately $50 million of annual revenue and approximately $10 million of annual adjusted EBITDA. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of 2025.

PHINIA expects the acquisition to enhance PHINIA's product portfolio and strategy, enabling the company to explore adjacent market opportunities and provide customers with a wider range of products and turnkey solutions. This move not only strengthens PHINIA's commitment to sustainability but also establishes the company as a key player in the transition towards alternative fuel technologies.

Brady Ericson, President and Chief Executive Officer of PHINIA, commented “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. 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 towards carbon neutrality.”

PHINIA and SEM’s complementary portfolios broaden the range of technical solutions PHINIA can bring to its customers. In particular, the combination of PHINIA’s Engine Management System experience and SEM’s significant experience with advanced ignition systems strengthens PHINIA’s position as a full system provider. Adding ignition systems to the existing PHINIA portfolio of fuel system components, electronics, software, and calibration capabilities will bring further opportunities to optimize the combustion process and strengthen PHINIA’s value proposition. Both organizations' demonstrated experience with hydrogen internal combustion creates additional value as PHINIA prepares for a carbon-free future by providing robust, high-performance products to the market.

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