Stoneridge Completes Transaction to Increase Its Equity Ownership of Its Brazil-based PST Joint Venture; Transaction Expected to be Accretive in 2012
Stoneridge, Inc. (NYSE: SRI) today completed the previously announced agreement with its joint venture partners to acquire an additional 24% ownership of PST Eletronica S.A. ("PST"), a Brazil-based electronic system provider focused on security, infotainment and accessories primarily for the automotive and motorcycle markets. Stoneridge's ownership interest in PST has now increased from 50% to 74%.
Stoneridge paid $29.7 million in cash and issued 1.94 million shares in exchange for the additional 24% equity ownership in PST. PST's future results will be consolidated into Stoneridge's future results. Stoneridge's results for 2011 will recognize an after-tax gain on its pre-acquisition investment in the range of $35.0 million to $44.0 million based in part on the value of Stoneridge's common shares on December 29, 2011. The transaction is expected to be accretive in Stoneridge's full-year 2012 consolidated financial results.
"We are pleased to have this strategic piece in place as it will allow us to accelerate our efforts to expand globally and strengthen our ability to serve the South American market in 2012 and beyond," said John C. Corey, president and chief executive officer of Stoneridge.
PST sales for 2011 as translated to U.S. dollars are expected to be in the range of $245 million to $255 million.
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