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| 8-K - STONERIDGE INC | v162928_8k.htm |
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Exhibit
99.1
FOR
IMMEDIATE RELEASE
STONERIDGE
ACQUIRES 51% OF BOLTON CONDUCTIVE SYSTEMS
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·
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Acquisition
will further Stoneridge’s growth in the military
channel
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Option to
purchase remaining 49% in
2013
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Credit
facility amended to facilitate
purchase
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WARREN,
Ohio – October 13, 2009 – 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 www.stoneridge.com.
-more-
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.
For more
information, contact:
Kenneth
A. Kure, Corporate Treasurer and Director of Finance
330/856-2443
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