Sensata Technologies B.V. has reached an agreement to buy tire pressure monitoring systems manufacturer Schrader International Inc. from private equity firm Madison Dearborn Partners LLC for $1 billion.
Sensata Technologies B.V. is a wholly owned indirect subsidiary of Sensata Technologies Holding N.V. based in Alemelo, Netherlands.
Sensata says the transaction provides TPMS and additional low pressure sensing capabilities that address large and fast growing sensing markets. The transaction is subject to regulatory approval and is expected to close during the fourth quarter of 2014.
Schrader is headquartered in Denver, Colo., and has sales and engineering offices in the United States, the United Kingdom, Germany, China, Japan and South Korea. Manufacturing facilities are located in the United States, United Kingdom, France, Brazil and China. The company employs 2,500 people globally, including over 300 engineers.
Schrader is expected to generate approximately $550 million in revenue in 2014, according to Sensata.
Schrader pioneered TPMS for global OEMs, a safety feature now standard on all cars in North America and growing globally in Europe and Asia. Fuel economy and safety regulations in each region are driving the rapid adoption of TPMS and Schrader has obtained over 50% market share in these regions, according to Sensata.
"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," says Martha Sullivan, Sensata Technologies president and chief executive officer.
“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," says Hugh Charvat, Schrader chairman, president and chief executive officer.
Sensata Technologies is a world supplier of sensing, electrical protection, control and power management solutions with operations and business centers in eleven countries. For more information, visit Sensata's website at www.sensata.com.
Schrader is a global manufacturer of sensing and valve solutions for automotive and industrial businesses. For more information, visit www.schraderinternational.com.
Bob Ulrich was named Modern Tire Dealer editor in August 2000. He joined the magazine in 1985 as assistant editor, and has been responsible for gathering statistical information for MTD's "Facts Issue" since 1993.