MTS Systems Corp. (Nasdaq: MTSC) has agreed to purchase PCB Group Inc. for $580 million, as both companies look to expand their product and customer reach. MTS will fund the acquisition with equity and debt.
PCB, based in Depew , New York, and founded in 1967, makes sensors that are used to measure force, pressure and vibration for the automotive, aerospace and energy industries. PCB will combine with MTS’ sensor division that will be led by PCB president David Hore. The combined company will have 2016 pro-forma revenue of about $785 million.
“The combination significantly strengthens and broadens our sensor product offerings and is highly synergistic with both our test and sensor business units, making it a unique fit with MTS,” says MTS CEO Jeffrey Graves. MTS, headquarted in Eden Prairie, Minnesota, produces sensor and testing equipment for the material handling, biotechnology, manufacturing and industrials sectors.
In other sensor deals, Sensata Technologies Holding NV (NYSE: ST) acquired Custom Sensors & Technologies in 2015 and Universal Electronics Inc. (Nasdaq: UEIC) said it will buy Ecolink Intelligent Technology Inc.
J.P. Morgan Securities LLC (NYSE: JPM) and Simpson Thacher & Bartlett LLP are advising MTS. Blackarch Partners is advising PCB.