Defense and automotive supplier Bolton Conductive Systems today said it has agreed to sell majority ownership to vehicle switches and electronics maker Stoneridge Inc.
Stoneridge, based in Warren, Ohio, will acquire a 51 percent equity stake in Bolton under the deal for $5.86 million. The deal will close by day's end.
Stoneridge also has an option to acquire the remaining portion in installments through 2013, depending on BCS's performance in 2010-12.
Bolton, based in suburban Detroit, makes electrical components for defense, automotive, marine and specialty vehicles. Stoneridge said in a statement today that Bolton's relationship with prime defense contractors like General Dynamics Land Systems, AM General L.L.C., and BAE Systems will complement Stoneridge's own business relationships with Navistar International Corp.
“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,” Stoneridge President and CEO John Corey said in a statement.
“We expect to…expand Stoneridge's product offering in the military channel and draw on BCS's strengths from its contacts in the industry.”
William Bolton, founder of BCS, expects to remain its president and CEO at least through 2013 under terms of the acquisition. After that time, he said, the two companies may “re-evaluate” his role.
Stoneridge has more than 35 locations worldwide, including a sales and engineering support center in suburban Detroit.