Sensata Technologies Announces Agreement to Acquire Honeywell's 'Automotive on Board' Sensors Business
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ALMELO, Netherlands, Oct. 28 -- Sensata Technologies Holding N.V. (NYSE: ST) (the "Company") announced today that it has reached a definitive agreement to acquire the "Automotive on Board" sensors business of Honeywell International (NYSE: HON) for $140 million in cash.
"This acquisition further expands our leadership in the global automotive sensors market and complements our already strong organic growth in the powertrain segment for our existing pressure products," said Tom Wroe, Sensata Technologies Chairman and Chief Executive Officer. "It also adds new capabilities in light vehicle speed and position sensing and builds Sensata's market share in Asia - specifically in China, the world's fastest growing automotive sensors market."
Sensata expects to fund the purchase from available cash resources and anticipates that this transaction will be neutral to 2010 earnings, excluding transaction costs in the range of $3-4 million that will be incurred in Q4 2010. The transaction, which is subject to regulatory review, is expected to close in early 2011. It is expected that the acquisition will contribute to both revenue and Adjusted Net Income growth in 2011 and beyond. The Automotive on Board sensors business has annual sales of approximately $130 million.
"We believe this purchase represents a strategic use of our cash on-hand and meets all our strategic and investment return criteria," said Sensata Technologies Chief Financial Officer Jeff Cote. "We expect to realize synergies on the integration activities over 18 to 24 months."
Conference Call Details
The Company will conduct a conference call this afternoon at 4:30 p.m. Eastern Daylight Time to discuss the acquisition in more detail.
The U.S. dial in for the call is 1-877-486-0682 and the non-U.S. number is 706-634-5536. The conference ID is 21659555. 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 October 28, 2010 through November 4, 2010. 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 21659555.
A live webcast of the conference call will also be available through the Company's investor relations page at investors.sensata.com. An archived replay of the webcast will be available at the same location following the live conference call.
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. Majority-owned by affiliates of Bain Capital Partners, LLC, a leading global private investment firm, and its co-investors, Sensata employs approximately 10,000 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. For more information, please visit Sensata's web site at www.sensata.com.
SOURCE Sensata Technologies Holding N.V.
CONTACT:
Investors,
Maggie Morris,
+1-508-236-1069,
mmorris2@sensata.com;
News Media,
Linda Megathlin,
+1-508-236-1761,
lmegathlin@sensata.com
Web Site: www.sensata.com
