Stoneridge buying 51pct stake in Bolton Conductive

Stoneridge to acquire 51 percent stake in Bolton Conductive Systems for $5.9 million

• On 11:25 am EDT, Tuesday October 13, 2009

WARREN, Ohio (AP) -- Auto parts maker Stoneridge Inc. said Tuesday it agreed to acquire a 51 percent equity interest in electrical system supplier Bolton Conductive Systems LLC for an initial consideration of $5.9 million.

Stoneridge said that, depending on Bolton's performance in the coming three years, it could dole out additional payments in 2011, 2012 and 2013. The company will have the option to purchase the remaining 49 percent stake in Bolton in 2013, subject to customary conditions.

"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 Corey, Stoneridge's CEO.

Stoneridge also announced that it amended its asset-based credit facility, enabling it to acquire the 51 percent equity interest and option to buy the remaining 49 percent of Bolton in 2013.

Shares of Stoneridge fell 30 cents, or 3.4 percent, to $8.52 in morning trading.