(Tire Business Report)
Almelo, Netherlands – Sensata Technologies Holding NV, through its wholly owned indirect subsidiary Sensata Technologies BV, has reached an agreement to acquire Schrader International Inc. from private equity firm Madison Dearborn Partners LLC for $1 billion (€749m).
Denver-based Schrader, a major manufacturer of tire pressure monitoring system (TPMS) sensors, will enhance Sensata’s sensor offerings, the Dutch company said. Sensata supplies sensing, electrical protection, control and power management solutions with operations and business centres in 11 countries.
The transaction is subject to regulatory approval and is expected to close during the fourth quarter of 2014.
Schrader has sales and engineering offices in the US, the United Kingdom, Germany, China, Japan and South Korea. Manufacturing facilities are located in the US, United Kingdom, France, Brazil and China. Schrader employs 2,500 globally, including more than 300 engineers.
Schrader is expected to generate about $550 million in revenue in 2014.
“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, Sensata Technologies president and CEO. “Additionally, Schrader’s expertise in MEMS sensing, wireless communications and ASIC design will be highly complementary; we are excited to welcome this talented team into Sensata’s global organisation.”
“Today is an exciting day as we move into the next phase in the evolution of Schrader. The addition of Schrader to Sensata’s product portfolio makes sense strategically and operationally; we are aligned on our plans to continue to grow the business,” said Hugh Charvat, Schrader chairman, president and CEO.