This month's biggest M&A news: Texas Instruments will sell its Sensors & Controls business (but not its RFID systems operations) to affiliates of Bain Capital, LLC, an investment firm, for $3.0 billion in cash. The Massachusetts-based Sensors & Controls—which supplies the appliance, climate control, industrial, automotive, lighting, and aircraft markets—derives 50% of its revenue from outside North America.
"TI will intensify its focus on our high-growth core digital signal processing and analog semiconductor opportunities, while Sensors & Controls will have greater access to the investment and strategic resources it needs to fuel its future growth," says TI President and CEO Rich Templeton. Bain says it has a record of purchasing non-core divisions of large, multinational companies and partnering with managers and employees to build value. Sensors & Controls will retain its current management team. The deal "will allow us to accelerate our growth and serve our customers more effectively," said President Thomas Wroe, Jr. (www.ti.com/corp/docs/press/company/2006/scfactsheet.shtml)
Measurement Specialties (MSI) has agreed to acquire ATEX, a French company that provides vibration sensors to the Formula One racing market. "ATEX provides us a solid conduit to the motorsport market," says MSI CEO Frank Guidone. "ATEX will be able to leverage our growing investment in vibration sensor development across an expanded customer base. We also expect near-term synergies as ATEX introduces MSI pressure sensors to their customers." (www.meas-spec.com)