Warren, Ohio – Stoneridge Inc. has agreed to sell its wiring business segment assets to Motherson Sumi Systems Ltd. for $65.7 million and the assumption of certain related liabilities. Motherson, an India-based manufacturer of diversified products for the global automotive industry, intends to expand its presence in North America through this transaction.
Included in the transaction are six manufacturing facilities located in Portland, Indiana; Chihuahua, Mexico; Saltillo, Mexico; and Monclova, Mexico; as well as an engineering and administrative center located in Warren, Ohio. The transaction involves approximately 4,700 employees and is expected to close in the third quarter of 2014, subject to customary closing conditions, including required regulatory approvals.
Stoneridge's wiring business designs and manufactures wiring harness products for sale principally to the commercial, agricultural and off-highway vehicle markets, as well as assembling entire instrument panels that are configured specifically to an OEM customer's specifications in the commercial vehicle market.
"The combination of Stoneridge's wiring business with Motherson will increase the vertical and global integration of the business, providing greater size, scale, and additional global capabilities to service customers' requirements," says John C. Corey, president and CEO of Stoneridge.
Corey adds, "Our wiring business has a strong management team and highly dedicated employees. It is our expectation that they will be the foundation for the North American market for Motherson. We thank them for their contributions to Stoneridge and know they will continue to thrive within the Motherson organization."
In recent years, Stoneridge's strategic approach has been to emphasize the development of advanced technology products and engineered product applications.
"With the sale of our Wiring Business, we can now increase our focus and resources on our other business segments, which are technology-driven with global applications and offer greater opportunities to provide higher value to our shareholders," Corey says.
Source: Stoneridge Inc.