Dutch firm Sensata Technologies BV is to acquire the Schrader group of companies from Madison Dearborn Partners for US$1 billion. Schrader is the global leader in tyre pressure monitoring sensors (TPMS). The transaction provides TPMS and additional low pressure sensing capabilities that address large and fast growing sensing markets and adds to Sensata’s industry-leading sensing position. The transaction is subject to regulatory approval and is expected to close during the fourth quarter of 2014.
Schrader is headquartered in Denver and has sales and engineering offices in the US, the UK, Germany, China, Japan and South Korea. Manufacturing facilities are located in the US, UK, France, Brazil and China. Schrader employs 2,500 people globally, including over 300 engineers. Schrader is expected to generate approximately US$550 million in revenue in 2014. Schrader pioneered TPMS for global OEMs, a safety feature now standard on all cars in North America and growing globally in Europe and Asia.
Fuel economy and safety regulations in each region are driving the rapid adoption of TPMS and Schrader has obtained over 50% market share in these regions.
“The acquisition of Schrader extends Sensata’s leadership position in pressure sensing and provides further access to a rapidly growing US$2 billion low pressure sensor market where the largest current opportunity is in TPMS,” said Martha Sullivan, Sensata Technologies 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 organisation.”