Sensata Technologies Holding NV (Almelo, Netherlands) has announced it has reached an agreement to acquire the Schrader group of companies form Madison Dearborn Partners LLC for a total enterprise value of $1.0 billion. Schrader is the global leader in tire pressure monitoring sensors (TPMS).
Sensata was formed in 2006 when Texas Instruments sold its sensors and controls division to Bain Capital LLC for $3.0 billion in cash. Since then the company has gone public on the New York Stock Exchange and made a series of acquisitions. The latest transaction is set to provide automotive TPMS and additional low pressure sensing that is complementary to Sensata's position in industrial and automotive sensing.
The transaction is subject to regulatory approval and is expected to close during the fourth quarter of 2014.
Schrader (Denver, Colo has sales and engineering offices in the United States, the United Kingdom, Germany, China, Japan and South Korea and is expected to generate approximately $550 million in revenue in 2014. Schrader pioneered TPMS for global OEMs and has obtained over 50 percent market share in most regions, Sensata said.
The deal is being made ahead of China's ramp up adoption of TPMS, which is expected to drive sales higher.
"The acquisition of Schrader extends Sensata's leadership position in pressure sensing and provides further access to a rapidly growing $2 billion low pressure sensor market where the largest current opportunity is in TPMS," said Martha Sullivan, CEO of Sensata, in a statement. "Additionally, Schrader's expertise in MEMS sensing, wireless communications and ASIC design will be highly complementary."
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