Stoneridge Inc. has sold it assets related to some of its switch and connector product lines to Standard Motor Products Inc. for approximately $40 million. The move is part of its Stoneridge 2020 project, which is aimed at focusing its business on core technologies and growth.
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, Mass., 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, which it plans to close as part of its Stoneridge 2020 project, as well as certain other net working capital assets related to the business.
The company has begun moving engineering capabilities and will relocate the remaining products currently manufactured at the Canton location to other North American manufacturing sites. Stoneridge is targeting a closure of that 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," Stoneridge President and CEO Jon DeGaynor said in a statement. "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 adviser to Stoneridge for this transaction.