Sensata's Unit To Buy Schrader Group Of Companies From Madison Dearborn

(RTTNews) - Sensata Technologies Holding N.V.'s (ST) wholly owned indirect subsidiary, Sensata Technologies B.V., has agreed to acquire the Schrader group of companies from Madison Dearborn Partners, LLC for a total enterprise value of $1.0 billion.

Headquartered in Denver, Colorado, Schrader deals with tire pressure monitoring sensors or TPMS. The transaction provides TPMS and additional low pressure sensing capabilities that address large and fast growing sensing markets and adds to Sensata's industry-leading sensing position.

Schrader has sales and engineering offices in the U.S., the UK, Germany, China, Japan and South Korea. Manufacturing facilities are situated in the United States, United Kingdom, France, Brazil and China. It employs 2,500 people wordwide, including more than 300 engineers. Schrader is likely to generate around $550 million revenue in 2014.

"The purchase price represents less than a 10x multiple on estimated 2015 stand-alone EBITDA," noted Paul Vasington, Sensata Technologies Chief Financial Officer. He continued, "While we expect Schrader to be $0.13 to $0.16 dilutive to adjusted earnings per share in 2014, we expect Schrader to be $0.18 to $0.21 accretive in 2015, provide $0.50 to $0.55 of accretion after integration and debt pay-down and provide an additional $0.18 to $0.22 accretion when China ramps adoption of TPMS."

The transaction may close in the fourth quarter of 2014. Barclays Bank PLC and Morgan Stanley Senior Funding, Inc. have committed to provide debt financing to support the transaction.