Motherson Sumi to purchase Stoneridge’s Wiring Business
Stoneridge’s asset purchase agreement, dated May 26, 2014 includes the sale of its Wiring Business segment assets to Motherson Sumi Systems for $65.7 million alongwith assumed wiring business related liabilities. India-based manufacturer of varied products for the global automotive industry, Motherson is keen to expand its presence in North America through this deal.
The transaction includes 6 manufacturing facilities in Portland, Indiana; Chihuahua, Mexico; Saltillo, Mexico; and Monclova, Mexico; and an engineering and administrative centre at Warren, Ohio. About 4,700 employees work at Stoneridge’s facilities. Stoneridge’s Wiring Business designs and manufactures wiring harness products for commercial, agricultural and off-highway vehicle markets. They also assembled instrument panels configured specifically to an OEM customer’s specs 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,” said John C. Corey, President and Chief Executive Officer of Stoneridge.
Corey added, “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.”
“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 said.
Corey continued, “The transaction is not expected to have a material effect on Stoneridge’s net new business over the next five years because most of the Company’s growth is being driven by products in its Control Devices, Electronics and PST segments.”