Sensata Technologies Holding NV (NYSE: ST) is picking up Custom Sensors & Technologies Inc. in a $1 billion deal.
Moorpark, California-based Custom designs and manufactures sensors, controls and actuators. The business includes the Kavlico, BEI, Crydom and Newall product lines, plus sales, engineering and manufacturing sites in the U.S., U.K., Germany, France, China and Mexico. During the last 12 months, the group generated about $320 million in revenue.
Kavlico provides linear and rotary position sensors for the aerospace market, as well as pressure sensors to the industrial market. BEI supplies harsh environment position sensors, optical and magnetic encoders and motion-control sensors to the industrial, aerospace, agricultural and medical device markets. Crydom manufactures electronic switching devices for the power control market. Newall provides encoders and digital readouts to the machinery and machine tool markets.
“This acquisition further extends our sensing content beyond automotive markets and builds scale in pressure sensing," says Sensata CEO Martha Sullivan.
Sensata supplies sensing, electrical protection, control and power management services and products. This is the company’s second planned $1 billion purchase in the past year. In October, Sensata paid $1 billion to buy Schrader International from PE firm Madison Dearborn Partners LLC. Schrader makes sensors that monitor tire pressure.
Bank of America Merrill Lynch committed debt financing for the deal, and Lazard acted as Sensata’s financial adviser. Kirkland & Ellis LLP provided legal advice.