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UPDATE 1-Stoneridge to buy 51 pct of electrical system supplier

Tue Oct 13, 2009 10:25am EDT

Stocks

   

* To intially pay $5.9 mln for Bolton Conductive Systems stake

* Will have option to buy remaining 49 pct in 2013

* Amends credit facility to help the deal

Oct 13 (Reuters) - Stoneridge Inc (SRI.N), a maker of electrical and electronic components, said it agreed to buy 51 percent of Michigan-based electrical system supplier Bolton Conductive Systems (BCS) for an initial payment of $5.9 million.

The company said there would be additional consideration payments in 2011, 2012 and 2013, based on BCS' performance in the next three years.

"BCS has strong products and relationships and represents an opportunity for Stoneridge to immediately expand our presence in the military channel," Chief Executive John Corey said in a statement.

Stoneridge amended its asset-based credit facility to enable it to acquire the stake.

Shares of Stoneridge were down 3 percent at $8.55 in early morning trade Tuesday on the New York Stock Exchange. (Reporting by Amulya Nagaraj in Bangalore; Editing by Ratul Ray Chaudhuri)



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