HOWLAND, Ohio (WKBN) – An automotive parts manufacturer in Howland is changing hands.
Stoneridge, Inc., a maker of automotive electrical parts, has entered into a purchase agreement to sell its wiring business to India-based Motherson Sumi Systems Ltd. for $65.7 million.
The purchase is part of nationwide acquisition from Sumi Systems to expand its presence in North America.
Included in the transaction are six manufacturing facilities located in Portland, Ind.; Chihuahua, Mexico; Saltillo, Mexico; and Monclova, Mexico; as well as an engineering and administrative center located at 9400 E. Market St., Howland.
The transaction involves about 4,700 employees across all the locations. The deal is expected to close between July and September, pending regulatory approval.
The Howland wiring business designs and manufactures wiring harness products for sale primarily to the commercial, agricultural and off-highway vehicle markets, as well as assembling entire instrument panels for commercial vehicles.
“The combination of Stoneridge’s wiring business with Motherson will increase the vertical and global integration of the business, providing greater size, scale and additional global capabilities to service customers’ requirements,” said John C. Corey, President and Chief Executive Officer of Stoneridge.
In a news release, neither company addressed worker retention but Corey said he expects his employees to be a “foundation” for Motherson and that they will “continue to thrive within the Motherson organization.”