SRI Stoneridge Inc

On November 2, 2021, Stoneridge, Inc. (the “Company”) entered into a Share Purchase Agreement (the “SPA”) by and among the Company, as the seller, and Minda Corporation Limited (“Minda”), as the buyer, and Minda Stoneridge Instruments Limited (“MSIL”). Pursuant to the SPA the Company agreed to sell to Minda the Company’s minority interest in MSIL, which represents 49% of the total outstanding equity of MSIL. The purchase price of the MSIL equity shares is $21.5 million equivalent Indian Rupee which is payable in U.S dollars at closing. The SPA contains representations and warranties customary for transactions of this type. Subject to certain limitations, the parties to the SPA have agreed to indemnify the others for breaches of representations, taxation, and other specified matters. The parties expect to close the transaction by December 30, 2021, subject to the satisfaction of customary closing conditions.

Prior to entering into the SPA, the Company and Minda owned 49% and 51%, respectively, of MSIL. MSIL is based in India and manufactures electronics, instrumentation equipment and sensors primarily for the motorcycle, commercial vehicle and automotive markets. The Company recognized equity in earnings of MSIL of $1.3 million for the nine months ended September 30, 2021 and $1.5 million and $1.6 million for the years ended December 31, 2020 and 2019, respectively.

The foregoing summary is qualified in its entirety by reference to the SPA, which is filed as Exhibit 10.1 hereto and incorporated herein by reference.