Stoneridge Inc., a leader in highly engineered electrical and electronic components for the commercial vehicle and automotive industry, announces that it has sold assets related to non-core switches and connectors product lines to Standard Motor Products, Inc. (SMP), for approximately $40 million, subject to a post-closing inventory adjustment. Related to the transaction, Stoneridge and SMP have entered into a transition services agreement, supply agreement and contract manufacturing agreement to help support the transition of the product lines to SMP’s facilities.
Products related to the business are currently manufactured in Juarez, Mexico and Canton, MA, and include ball switches, ignition switches, rotary switches, courtesy lamps, toggle switches, headlamp switches and other related components. Stoneridge will retain the Canton manufacturing facility, as well as certain other net working capital assets related to the business.
In January, Stoneridge announced Stoneridge 2020, a project aimed at focusing its business on core technologies to drive sustainable, outsized growth, and the closure of its Canton manufacturing facility. The company has begun moving engineering capabilities and will relocate the remaining products currently manufactured at that location to other North American manufacturing sites. Stoneridge is targeting a closure of the facility by the end of 2019, at which time it is expected that Stoneridge will sell the facility.
“Stoneridge has undergone a significant business transformation to position the company for long-term growth,” says Jon DeGaynor, President and Chief Executive Officer, Stoneridge. “This divestiture is part of an initiative to better align Stoneridge’s operations and engineering footprint and focus resources on the technology platforms and growth products that will drive value for our customers, shareholders and employees.”
Angle Advisors, LLC, acted as financial advisor to Stoneridge for this transaction.