ALMELO, Netherlands /PRNewswire/ -- Sensata Technologies Holding N.V. announced that it has reached an agreement whereby certain Sensata companies will acquire the shares of Sensor-NITE Group Companies from Elex Group for €225 million, or approximately $325 million, based on current exchange rates.
Sensor-NITE is a leading manufacturer of high-temperature sensors, used in the exhaust after-treatment systems of diesel and leading-edge gasoline engines. The business is headquartered in Tessenderlo, Belgium, with operations and manufacturing in Sofia and Botevgrad, Bulgaria.
The transaction, which is subject to regulatory review and other customary closing conditions, is expected to close in the third quarter.
The company conducted a conference call on June 15, at 9:00 am ET, to discuss the transaction. The U.S. dial-in is: 877-486-0682, and the non-U.S. dial-in is 706-634-5536. The conference ID is 75797205. To help ensure that the conference begins in a timely manner, please dial in 10 minutes prior to the start of the call. For those unable to participate in the conference call, a replay will be available for one week beginning on June 15, at 11:30 am ET and ending on June 22, 2011. To access the replay, the U.S. dial-in number is 800-642-1687 and the non-U.S. dial-in number is 706-645-9291. The replay passcode is 75797205.
"Sensor-NITE's leading market position, competitive cost structure, and differentiated technology sets it apart from its competitors and is an ideal fit with Sensata's core Sensors business. This combination will provide a new technology platform and strong growth opportunities in powertrain systems we currently serve," said Tom Wroe, Sensata Technologies Chairman and Chief Executive Officer.
Sensor-NITE Chief Executive Officer Chris Baerts said, "This is clearly a win for both businesses as Sensor-NITE will now have the opportunity to expand its reach as we jointly leverage Sensata's global footprint and worldwide customer base to address the increasing demand for cleaner emissions around the world."
Sensata expects to have sufficient cash on the balance sheet to fund the transaction, but may also consider using debt based on the favorability of market conditions. Regardless of how the deal is financed, Sensata expects the transaction to be accretive to earnings. Sensata further expects that the acquisition will contribute to both net revenue and adjusted net income growth in 2011 and beyond. Sensor-NITE recorded revenues of approximately $135 million in 2010.
Sensata's Chief Administrative and Financial Officer Jeff Cote said, "We believe this purchase represents a strategically sound use of capital and is in line with our previously announced objective to execute on acquisitions that are close to the core and accretive to Sensata's business. The long-term potential for this technology is substantial, and we believe it will accelerate our organic growth rate over our long-range plan, given the expansion of emissions regulations to the commercial diesel market and the increased global use of turbochargers on gasoline engines in response to stricter emission requirements on a worldwide basis."
Sensata will discuss the transaction in more detail at its upcoming Investor and Analyst Day on June 22. The event will be webcast from the Investor Relations section of the Sensata Web site.
About Sensata Technologies Holding N.V.
Sensata Technologies Holding N.V. is one of the world's leading suppliers of sensing, electrical protection, control, and power management solutions. Employing approximately 11,500 people in nine countries, Sensata's products improve safety, efficiency, and comfort for millions of people every day in automotive, appliance, aircraft, industrial, military, heavy vehicle, heating, air-conditioning, data, telecommunications, recreational vehicle, and marine applications.
About Sensor-NITE Group Companies
Sensor-NITE, formed in Belgium in 1996, is a Tier 1 supplier of high-temperature exhaust gas sensors for the automotive industry. Its sensors are used for exhaust gas temperature monitoring in exhaust gas recirculation systems, diesel particulate filters, selective catalytic reduction, turbo-charging systems (overheating detection/fuel economy), oxidation catalysts, NOx traps, and fuel reformers.