Stoneridge Inc., a leading designer and manufacturer of highly engineered electrical and electronic vehicle systems, announced that the company has entered into a Share Purchase Agreement (SPA) to sell its minority interest in Minda Stoneridge Instruments Ltd. (MSIL), which represents 49% of the total outstanding equity of MSIL, to Minda Corporation Limited.
The purchase price of the MSIL equity shares is $21.5 million equivalent Indian Rupee, which is payable in U.S dollars at closing. The parties expect to close the transaction by Dec. 30, 2021, subject to the satisfaction of customary closing conditions.
Jon DeGaynor, president and CEO, commented, “This transaction allows Stoneridge to continue its transformation by aligning our resources with our greatest areas of opportunity. We value the partnership we have developed with Minda through MSIL and wish them continued success going forward.”
Prior to entering into the SPA, the company and Minda owned 49% and 51%, respectively, of MSIL. MSIL is based in India and manufactures electronics, instrumentation equipment and sensors primarily for the automotive, motorcycle and commercial vehicle markets.
The company recognized equity in earnings of MSIL of $1.3 million for the nine months ended Sept. 30, 2021, and $1.5 million and $1.6 million for the years ended Dec. 31, 2020, and 2019, respectively.