Sensata Technologies Holding N.V. announced Aug. 18 that its wholly owned indirect subsidiary Sensata Technologies B.V. has reached an agreement to acquire the Schrader International group of companies from Madison Dearborn Partners LLC for a total enterprise value of $1.0 billion.
Schrader is a global leader in tire pressure monitoring sensors (TPMS) for the automotive, appliance, aircraft, industrial, military, heavy vehicle, heating, air-conditioning, data, telecommunications, recreational vehicle and marine industries.
According to a release, 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. 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. Schrader employs 2,500 people globally, including more than 300 engineers. Schrader is expected to generate approximately $550 million in revenue in 2014.
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 over 50% market share in these regions.
“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,” stated 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 organization.”
“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. “I would like to thank Madison Dearborn Partners for their partnership over the past few years. Their commitment and advice have helped us surpass our ambitious goals.”
Barclays Bank PLC and Morgan Stanley Senior Funding Inc. committed to provide debt financing to support the transaction. Centerview Partners acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to Sensata Technologies. Barclays, Citigroup and Guggenheim Securities LLC acted as financial advisors and Kirkland & Ellis LLP acted as legal advisor to Schrader International.
One of the biggest dangers a motorist faces is a tire blowout — and it’s magnified whenever you’re towing another vehicle or a trailer. Since many tire failures are caused by low air pressure, knowing beforehand when a tire is losing air can eliminate this potential catastrophe. At the very least, it can save a driver money because under-inflated tires wear prematurely.
The nVISION tire-pressure monitoring system (TPMS) from Hopkins Manufacturing Corp. is the first TPMS made specifically for RVers. With its patent pending 4-memory position settings, this system allows users to monitor the exact number and configuration of tires that correspond to the vehicle they are driving and/or towing. The memory positions can be recalled at the touch of a button, eliminating the need to reprogram each time a different vehicle and/or towed vehicle is driven. The nVISION TPMS allows drivers to check their tire pressures right from the driver’s seat. Installation is quick and easy; sensors simply attach to the tire valve stems and continuously send tire pressure readings to the monitor located on the dash. The 2-level warning system (12.5% low and 25% low) warns drivers with both visual and audible alerts when tires become low.
The base system includes one monitor with non-skid pad and 4 tire sensors. Additional sensors are sold in 2-packs so that users can monitor all tires on driven and towed vehicles as well as spare tires; the system will track up to 24 tires simultaneously. The monitor is also portable, wireless and travels with drivers to whichever vehicle they are driving. nVISION TPMS works on all sizes of tires, up to 150 PSI. for more information, contact: Hopkins Manufacturing Corp., 428 Peyton, Emporia, KS 66801-1157, www.nvisionsafety.com.