Warren, Ohio –Stoneridge Inc. has completed its sale of its wiring business assets to Motherson Sumi Systems Ltd. in accordance with the asset purchase agreement dated May 26, 2014. Cash proceeds for the transaction were $71.4 million and consisted of the $65.7 million stated purchase price and the assumption of certain related liabilities of the wiring business adjusted for certain cash on hand and an estimated net working capital credit. Final proceeds are subject to customary post-closing adjustments.
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 wiring business designs and manufactures wiring harness products for sale principally to the commercial, agricultural, and off-highway vehicle markets, as well as assembles entire instrument panels that are configured specifically to an OEM customer's specifications in the commercial vehicle market.
"Closing the transaction to sell the wiring business marks a significant milestone in our journey to transform Stoneridge," says John C. Corey, president and CEO. “We will focus our resources on our other business segments, which are technology-driven with global applications and offer greater opportunities to provide higher value to our shareholders."
Source: Stoneridge Inc.