Standard Motor Products (SMP) has acquired certain switch and connector product lines from Stoneridge Inc. Angle Advisors acted as the exclusive investment banking advisor to Stoneridge in completing this transaction.
Stoneridge, headquartered in Novi, Michigan, is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the automotive, commercial vehicle, motorcycle, agricultural and off-highway vehicle markets.
The switch and connector maker currently manufactures products in Juarez, Mexico, and Canton, Massachusetts, which include ball switches, ignition switches, rotary switches, courtesy lamps, toggle switches, headlamp switches and other related components. The Stoneridge division serves a diverse group of end-markets, including commercial vehicle, agriculture, passenger vehicle, construction, material handling and motorcycle customers. Channels served include the aftermarket, primarily with the Pollak brand, as well as OEM and OES. As part of the transaction, SMP plans to move all production to its existing facilities.
“Stoneridge has undergone a significant business transformation to position the company for long-term growth,” said Jon DeGaynor, president and CEO, Stoneridge. “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.”
“We are very pleased to announce this acquisition. We believe that the two businesses are very complementary. Pollak has a long and successful history of providing custom and standard components to many prestigious customers,” said Eric Sills, CEO and president of SMP. “This acquisition will enhance our growth opportunities in OE/OES, heavy-duty and commercial vehicle markets and add to our existing expertise in aftermarket distribution, product management and service. The new market exposure offers expansion opportunities for our existing product lines as well as potential for new products to manufacture and sell.”
“We would like to thank the team at Angle Advisors for its leadership and support,” added Matt Horvath, director, investor relations and corporate development. “Angle’s considerable experience in the industry and with corporate carve-out transactions, and the ability to anticipate numerous complexities was critical in our ability to be successful in this transaction.”