Item 8.01 Other Events

On March 8, 2021, Stoneridge, Inc. (the "Company") entered into an Asset Purchase Agreement (the "APA") by and among the Company, the Company's wholly owned subsidiary, Stoneridge Electronics AS, as the Sellers, and Standard Motor Products, Inc. ("SMP") and SMP Poland SP Z O.O., as the Buyers. Pursuant to the APA the Company agreed to sell to the Buyers the Company's assets located in Lexington, Ohio and Tallinn, Estonia related to the manufacturing of particulate matter sensor products and related service part operations (together, the "PM sensor assets"). In the past, the Company has sometimes referred to the PM sensor assets as the Company's soot sensing business. The Buyers are not acquiring any of the Company's locations or employees. The purchase price for the sale of the PM sensor assets is $4.0 million (subject to a post-closing inventory adjustment) plus the assumption of certain liabilities. Subject to certain limitations, the parties to the APA have agreed to indemnify the others for breaches of representations, warranties and covenants and other specified matters. The APA contains representations and warranties customary for transactions of this type. The Company and SMP also entered into certain ancillary agreements, including a contract manufacturing agreement, a transitional services agreement, and a supply agreement, pursuant to which the Company will provide and be compensated for certain manufacturing, transitional, administrative and support services to SMP on a short-term basis.

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