Stoneridge Acquires 51% of Bolton Conductive Systems
14 October 2009 - 12:15AM
PR Newswire (US)
- Acquisition will further Stoneridge's growth in the military
channel - Option to purchase remaining 49% in 2013 - Credit
facility amended to facilitate purchase WARREN, Ohio, Oct. 13
/PRNewswire-FirstCall/ -- Stoneridge, Inc. (NYSE: SRI) announced
today that it has signed an agreement to acquire a 51% equity
interest in Bolton Conductive Systems LLC (BCS), an electrical
system supplier based in Walled Lake, Michigan, for initial
consideration of $5,865,000 and depending on BCS's performance in
2010, 2011 and 2012, additional consideration payments in 2011,
2012 and 2013. Subject to the customary closing conditions,
Stoneridge acquired a 51% equity interest in BCS and will have the
option to purchase the balance of BCS in 2013. BCS designs and
manufactures a wide variety of electrical solutions for the
military, automotive, and marine and specialty vehicle markets.
Bolton Conductive Systems has been focusing its resources on
designing, manufacturing and selling to Oshkosh, Force Protection,
General Dynamics, AM General and BAE in the military market which
will complement Stoneridge's efforts at Navistar. "BCS has strong
products and relationships and represents an opportunity for
Stoneridge to immediately expand our presence in the military
channel, which we believe has excellent strategic growth potential
and is a good long-term complement to our existing business," said
John C. Corey, president and chief executive officer of Stoneridge.
"We expect to achieve synergies from purchasing and manufacturing
for wiring, instrumentation and gauges derived from our scale and
capabilities. In addition we will expand Stoneridge's product
offering in the military channel and draw on BCS's strengths from
its contacts in the industry." "By becoming part of Stoneridge's
outstanding global organization, we will be able to expand our
capabilities and serve our customers better," said William Bolton,
president and founder of BCS. "We believe this combination is a
good fit and will contribute to the profitable growth of both
operations." Mr. Bolton will remain BCS's president and chief
executive officer through 2013. Stoneridge also announced that it
has amended its asset-based credit facility. The amendments will
enable Stoneridge to acquire the 51% equity interest and option to
buy the remaining 49% of BCS in 2013. In addition Stoneridge has
modified the asset-based credit facility to allow certain foreign
subsidiaries to become non-borrowers under the credit agreement and
permit certain internal transactions that will facilitate the
implementation of a more efficient European cash management
structure. About Stoneridge, Inc. Stoneridge, Inc., headquartered
in Warren, Ohio, is an independent designer and manufacturer of
highly engineered electrical and electronic components, modules and
systems principally for the automotive, medium- and heavy-duty
truck, agricultural and off-highway vehicle markets. Additional
information about Stoneridge can be found at
http://www.stoneridge.com/. Forward-Looking Statements Statements
in this release that are not historical fact are forward-looking
statements, which involve risks and uncertainties that could cause
actual events or results to differ materially from those expressed
or implied in this release. Factors that may cause actual results
to differ materially from those in the forward-looking statements
include, among other factors, the loss of a major customer; a
significant change in automotive, medium- and heavy-duty truck or
agricultural and off-highway vehicle production; disruption in the
OEM supply chain due to bankruptcies; a significant change in
general economic conditions in any of the various countries in
which the Company operates; labor disruptions at the Company's
facilities or at any of the Company's significant customers or
suppliers; the ability of the Company's suppliers to supply the
Company with parts and components at competitive prices on a timely
basis; customer acceptance of new products; and the failure to
achieve successful integration of any acquired company or business.
In addition, this release contains time-sensitive information that
reflects management's best analysis only as of the date of this
release. The Company does not undertake any obligation to publicly
update or revise any forward-looking statements to reflect future
events, information or circumstances that arise after the date of
this release. Further information concerning issues that could
materially affect financial performance related to forward-looking
statements contained in this release can be found in the Company's
periodic filings with the Securities and Exchange Commission.
DATASOURCE: Stoneridge, Inc. CONTACT: Kenneth A. Kure, Corporate
Treasurer and Director of Finance, +1-330-856-2443 Web Site:
http://www.stoneridge.com/
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