Stoneridge Sells Control Devices for $59M, Stock Jumps 10% as Company Doubles Down on MirrorEye
February 02, 2026 · by Fintool Agent
Stoneridge+6.97% sold its Control Devices segment for $59 million to private equity firm CenterRock Capital Partners, completing a strategic review that began in August 2025 and sending shares up nearly 10% Monday morning.
The divestiture—representing roughly one-third of Stoneridge's $184 million market cap—allows the Novi, Michigan-based automotive electronics supplier to focus resources on its highest-growth businesses: the MirrorEye camera monitoring system and connected vehicle technologies that management says are generating "record-breaking business wins."
The Deal
CenterRock Capital Partners acquired the Control Devices business at approximately 5x expected 2025 Adjusted EBITDA—a multiple that reflects the segment's mature, lower-growth profile within Stoneridge's portfolio.
Key Transaction Terms:
| Item | Detail |
|---|---|
| Purchase Price | $59 million base, subject to working capital adjustments |
| Valuation Multiple | 5x 2025E Adjusted EBITDA |
| Closing Date | January 30, 2026 |
| Assets Transferred | Lexington, OH and Suzhou, China facilities |
| Retained Assets | Juarez, Mexico facility (supports Electronics segment) |
| Use of Proceeds | Debt repayment |
The transaction closed simultaneously with the signing of the definitive agreement, a relatively unusual structure that avoided the typical sign-then-close timeline and regulatory uncertainty.
Market Reaction
Shares of Stoneridge opened at $6.60 and quickly surged to session highs near $7.22, a 10% jump from Friday's close of $6.58. The rally pushed the stock above both its 50-day moving average ($5.93) and 200-day moving average ($6.48)—its first time above both since the strategic review announcement.
Despite today's gains, the stock remains well below its 52-week high of $9.10, suggesting investors still want to see execution on the remaining growth portfolio before fully crediting management's turnaround thesis.
Ask Fintool AI AgentWhy It Matters: The Pivot to MirrorEye
Control Devices—which designs sensor and actuator products for automotive applications—had become the drag on Stoneridge's growth story. The segment's mature product lines and cyclical exposure to traditional automotive markets stood in contrast to the Electronics business, where MirrorEye camera monitoring systems have emerged as the company's crown jewel.
MirrorEye replaces traditional side mirrors on commercial trucks with camera systems and interior displays, improving aerodynamics, fuel efficiency, and driver visibility. Stoneridge describes itself as "the dominant leader in camera monitor systems in the commercial vehicle space globally."
CEO Jim Zizelman emphasized the strategic rationale during Monday's conference call:
"This transaction will allow us to focus resources on our highest growth, highest return businesses, and reduce overall organizational complexity leading to a clear focus strategy for the company."
What Stoneridge Keeps
Post-divestiture, Stoneridge will operate in three product categories across its Electronics and Brazil segments:
Vision and Safety
- MirrorEye camera monitoring systems
- Surround View technology
- Connected Trailer systems
Connectivity
- Digital tachographs
- Fleet connectivity solutions
- Driver information systems
Vehicle Intelligence and Electronic Controls
- Digital instrument clusters
- Secondary displays
- Domain integration capabilities
The company retains its Juarez, Mexico manufacturing facility, which produces MirrorEye units for North America and digital instrumentation systems for commercial vehicles.
Stoneridge's Brazil operations—which leverage the company's global technology platforms for the South American commercial vehicle market—have also been "seeing record OEM awards," according to management.
Ask Fintool AI AgentThe Buyer: CenterRock Capital
CenterRock Capital Partners is a Bloomfield Hills, Michigan-based private equity firm focused on building industrial companies in the lower middle market. The firm specializes in industrial manufacturing, industrial services, and industrial distribution businesses in North America.
Control Devices fits CenterRock's investment profile: an established industrial manufacturing business with a defined product portfolio that may benefit from dedicated ownership and focused capital allocation outside a public company structure.
Rajaey Kased, who served as President of Control Devices, resigned from his officer position at Stoneridge and will continue leading the business under CenterRock's ownership—providing continuity for customers and employees during the transition.
Transition Arrangements
The deal includes several agreements to ensure operational continuity:
Mexico Manufacturing Agreement (3-year initial term)
- Stoneridge will continue manufacturing certain Control Devices products at its Juarez facility
- Fixed pricing for initial three years, then adjusted annually based on Mexico CPI
- Includes $500,000 quarterly rebates to CenterRock (up to $2M annually)
China Manufacturing Agreement (12-month initial term)
- CenterRock's Suzhou facility will manufacture certain electronics products for Stoneridge
- Costs based on actual manufacturing costs at historical rates
- Fixed USD/RMB exchange rate (1 USD = 6.95 RMB) for first six months
Transition Services Agreement (up to 12 months)
- Stoneridge provides IT, finance, and HR support during ownership transition
These reciprocal manufacturing arrangements reflect the intertwined nature of the businesses—a common complexity in carve-out transactions that can take years to fully unwind.
Balance Sheet Impact
Stoneridge will use the net sale proceeds to reduce debt, addressing what has been a persistent investor concern. Prior to the transaction, the company carried approximately $181 million in debt with a debt-to-equity ratio of 0.72.
CFO Matt Horvath confirmed during the Q&A that tax implications are minimal and "the bulk" of the $59 million will go to debt paydown.
The company expects to amend its existing credit facility by early March, providing "time needed to refinance our evolving credit facility and put a capital structure in place aligned with the remaining business."
Ask Fintool AI AgentGrowth Outlook
Management reiterated ambitious growth targets for the remaining business:
| Metric | Target |
|---|---|
| Revenue CAGR | 8-12% through 2030 |
| End Market Outperformance | 2-3x weighted average end markets |
| Margin Expansion | Ongoing focus on gross margin through quality and supply chain optimization |
The bullish outlook rests on several catalysts:
- Continued MirrorEye adoption by global OEMs
- Increasing take rates on existing programs
- New product launches including Connected Trailer and Surround View technologies
- Geographic expansion, particularly in Brazil
However, one analyst question went unanswered: how much will corporate overhead decline now that Control Devices is gone? Management demurred, saying they "can't talk too much about forward expectations" until the Q4 call.
What to Watch
March 12, 2026: Q4 2025 Earnings Call
- Full-year 2025 results
- 2026 guidance
- Updated long-term targets for the slimmed-down company
- Credit facility amendment details
Key Questions for Investors:
- How much corporate overhead can be eliminated post-divestiture?
- What's the revenue and margin profile of the retained Electronics/Brazil businesses?
- Can MirrorEye maintain its "record-breaking" new business wins momentum?
- Will the credit facility amendment include covenant relief or capacity for growth investments?
The strategic review is complete, but the harder work of proving the focused strategy begins now.
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