Investing.com -- Stoneridge, Inc. (NYSE:SRI) stock surged 18% Monday after the company announced it has completed the sale of its Control Devices segment to an affiliate of Center Rock Capital Partners for a base purchase price of $59 million.
The transaction, which closed on January 30, is part of Stoneridge’s strategic initiative to focus on its core growth platforms. The company plans to use the net proceeds to repay debt and strengthen its balance sheet.
"This transaction is a critical step in our long-term strategy," said Jim Zizelman, President and Chief Executive Officer of Stoneridge. "As a result of this transaction, Stoneridge will be more focused and less complex, which in turn, is expected to create stronger shareholder returns and significantly de-risk our overall business profile."
Following the divestiture, Stoneridge will concentrate on technology solutions primarily for global commercial vehicle and off-highway markets across three product categories: Vision and Safety, Connectivity, and Vehicle Intelligence and Electronic Controls.
The company highlighted its plans to expand its Vision and Safety systems, including MirrorEye and adjacent products. Stoneridge also intends to leverage its position within commercial vehicle cockpits to deliver advanced technologies that improve vehicle safety and efficiency.
The company expects to amend its existing credit facility by the time it files its full-year 2025 financial results, which will be discussed in detail during a conference call scheduled for March 12, 2026.
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