Sensata Technologies Holding NV (NYSE: ST) is buying the Schrader International from Madison Dearborn Partners LLC for about $1 billion.

Denver-based Schrader makes sensors that monitor the pressure in tires. The group has sales and engineering offices in the U.S., U.K., Germany, China, Japan and South Korea. The deal is subject to regulatory approval and is expected to close in the fourth quarter.

Sensata supplies sensing, electrical protection, control and power management services in eleven countries. The company's products are used by the automotive, appliance, aircraft, industrial military, heavy vehicle, heating, air conditioning, data, telecommunications and marine markets.

Schrader expects the deal to help it grow the business.

The purchase price works out to nearly 10 times Schrader’s 2015 stand-alone Ebitda, according to Sensata CFO Paul Vasington.

Seller Madison Dearborn is a Chicago private equity firm that has raised more than $18 billion in capital. In March the firm sold technology company Fieldglass to SAP AG (NYSE: SAP). 

Barclays Bank PLC and Morgan Stanley Senior Funding Inc. committed debt financing for the deal. Centerview Partners acted as Sensata's financial adviser, while Skadden Arps Slate Meagher & Flom LLP provided legal advice. Barclays, Citigroup and Guggenheim Securities LLC acted as Schrader's financial advisers, while Kirkland & Ellis LLP was legal counsel.