Sensata Technologies plans to inflate its presence in pressure sensing equipment with a $1 billion deal to buy privately held Schrader International, which makes tire pressure monitoring sensors.
Sensata said Monday that the deal will give it better access to the rapidly growing $2 billion low pressure sensor market. It noted that tire pressure monitoring sensors have become a standard feature on cars and light trucks sold in North America, and use of the technology is growing globally.
Schrader, which is owned by the private equity firm Madison Dearborn Partners, is expected to generate about $550 million in revenue this year, according to Sensata. Schrader is based in Denver and employs about 2,500 people globally, including more than 300 engineers.
Sensata Technologies Holding NV, a former Texas Instruments subsidiary, is based in the Netherlands. It makes sensing, electrical protection, control and power management products.
U.S.-traded shares of Sensata closed at $46.17 on Friday and have climbed 19 percent so far this year, a bigger advance than the 6 percent gain registered by the Standard & Poor’s 500 index over the same span.
THE ASSOCIATED PRESS