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Sensata to buy Schrader

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ALMELO, Netherlands (Aug. 18, 2014) — Sensata Technologies Holding N.V., through its wholly owned indirect subsidiary Sensata Technologies B.V., has  agreed to acquire Schrader International Inc. from private equity firm Madison Dearborn Partners L.L.C. for $1 billion.

Denver-based Schrader, a major manufacturer of tire pressure monitoring system (TPMS) sensors, will enhance Sensata’s sensor offerings, the Dutch company said. Sensata supplies sensing, electrical protection, control and power management solutions with operations and business centers in 11 countries.

The transaction is subject to regulatory approval and is expected to close during the fourth quarter of 2014.

Chicago-based Madison Dearborn acquired Schrader in April 2012 for about $505 million.

Schrader has sales and engineering offices in the U.S., United Kingdom, Germany, China, Japan and South Korea, and manufacturing in the U.S., United Kingdom, France, Brazil and China. Schrader employs 2,500 globally, including more than 300 engineers.

Schrader is expected to generate about $550 million in revenue in 2014.

“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,” said 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.

Barclays Bank P.L.C. and Morgan Stanley Senior Funding Inc. have committed to provide debt financing to support the transaction.

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Titan International and the United Steelworkers union have petitioned the U.S. International Trade Commission and U.S. Department of Commerce seeking relief from OTR tire imports from China, India and Sri Lanka. What’s your opinion?

I wholeheartedly support their action – something needs to be done.
(36 votes)
I think it’s a bad idea that could inevitably tie the hands of domestic tire makers.
(10 votes)
I oppose any duties against tire importers—they only raise costs for distributors and make it harder to obtain inventory.
(19 votes)
I’m kind of on the fence and not sure what’s right, but need more information before deciding.
(11 votes)
I don’t really care whether or not relief is granted.
(2 votes)
Total votes: 78