Sensata to acquire Schrader International for $1B

SENSATA TECHNOLOGIES will acquire Schrader International Inc., a Denver-based manufacturer of tire pressure monitoring sensors. / COURTESY SENSATA TECHNOLOGIES
SENSATA TECHNOLOGIES will acquire Schrader International Inc., a Denver-based manufacturer of tire pressure monitoring sensors. / COURTESY SENSATA TECHNOLOGIES

FRANKFURT – Sensata Technologies Holding NV plans to buy Schrader International Inc. from Madison Dearborn Partners LLC for an enterprise value of $1 billion to expand in sensors that warn against low tire pressure.

The transaction is expected to be completed by the end of this year, Almelo, Netherlands-based Sensata said Monday in a statement. The purchase of Denver-based Schrader will add as much as 21 U.S. cents to adjusted earnings per share in 2015 and eventually as much as another 77 cents in coming years.

“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,” Sensata CEO Martha Sullivan said in the statement. The Dutch company will also gain access to wireless communication and ASIC chip design.

Sensata’s U.S. manufacturing business is based in Attleboro, Mass.

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Madison Dearborn and partners acquired Schrader from the Canada Pension Plan Investment Board’s Pinafore Holdings BV unit for $505 million in April 2012, backed in part by $335 million in loans. The business is a former division of Tomkins PLC, a U.K. auto-parts supplier acquired by the Canadian fund in 2010.

Schrader employs 2,500 people globally, including more than 300 engineers, and is expected to generate approximately $550 million in revenue in 2014.

Barclays PLC and Morgan Stanley are providing debt financing for the acquisition, Sensata said. The Dutch company’s financial adviser was Centerview Partners, while the legal adviser was Skadden, Arps, Slate, Meagher & Flom LLP. Barclays, Citigroup Inc. and Guggenheim Securities LLC were Schrader’s financial advisers, while Kirkland & Ellis LLP was the legal adviser.

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