Stoneridge (NYSE SRI) finalized the sale of its Control Devices segment to an affiliate of Center Rock Capital Partners on Friday, marking a definitive shift toward its high-growth electronics and safety platforms.
The $59 million cash transaction allows the Michigan-based supplier to offload its legacy mechanical component business and pivot entirely toward advanced vehicle intelligence.
The divestiture is a central component of CEO Jim Zizelman’s strategy to de-risk the company's profile while concentrating resources on "smart" technologies.
Stoneridge will now focus exclusively on its Electronics and Brazil segments, specifically targeting three core categories: Vision and Safety—anchored by its MirrorEye® camera-monitor system—Connectivity, and Vehicle Intelligence.
Management expects this streamlined structure to reduce organizational complexity and accelerate the ramp-up of record new business awards.
Financially, the move provides a critical liquidity cushion.
Stoneridge plans to use the net proceeds to pay down a portion of its $171 million debt and strengthen its balance sheet ahead of the 2026 fiscal year.
The company also confirmed it is working to amend its existing credit facility to align its capital structure with the smaller, more specialized post-transaction entity.