PHINIA Announces Agreement to Acquire Swedish Electromagnet Invest AB (SEM)

PHINIA has signed a definitive agreement to acquire SEM, a Swedish-based provider of ignition systems for alternative fuel applications. Founded in 1915, SEM delivers key technologies such as ignition modules, injector stators, and linear position sensors for natural gas, hydrogen, and other alternative fuels. The acquisition is set to strengthen PHINIA’s offerings across commercial vehicle, industrial, and off-highway sectors.

Deal Details and Financial Impact

PHINIA will acquire all issued and outstanding shares of SEM for $47 million. The acquisition is projected to generate approximately $50 million in annual revenue and around $10 million in annual adjusted EBITDA. The transaction is expected to close during the third quarter of 2025, subject to customary closing conditions as outlined in the definitive agreement.

Strategic Fit and Growth Opportunities

Through this acquisition, PHINIA aims to broaden its product lineup and market reach, particularly in adjacent sectors. The addition of SEM’s technologies enables PHINIA to develop more complete, turnkey solutions. This deal also accelerates PHINIA’s sustainability roadmap by deepening its capabilities in alternative fuel systems, including carbon-neutral and carbon-free ignition technology.

Leadership Perspective and Industry Impact

“SEM’s expertise aligns with PHINIA’s commitment to pioneering zero- and low-carbon solutions,” said Brady Ericson, CEO of PHINIA. “With over a century of innovation in ignition systems, SEM enhances our position in the commercial and industrial vehicle sectors. Together, we will accelerate the transition to carbon-neutral mobility and strengthen our presence across global markets.”

Hydrogen Experience Fuels Carbon-Free Vision

Both PHINIA and SEM have significant expertise in hydrogen internal combustion engine technology. This acquisition will enable PHINIA to scale hydrogen-ready ignition systems and fuel solutions across its global customer base. The integration of SEM’s advanced combustion components will further optimize system-level performance, positioning PHINIA as a comprehensive provider of sustainable powertrain technologies.