(Adds details, background)
June 18 Swiss electronics company TE
Connectivity said it would buy sensor maker Measurement
Specialties Inc for about $1.7 billion, including debt,
to grab a bigger slice of the high-growth global sensor market.
TE Connectivity - formerly Tyco Electronics, which split
from Tyco International Ltd in 2007 - said it expects
the global sensor market to grow 8 percent to $116 billion by
Measurement Specialties makes sensors that measure
temperature, pressure, acceleration, or humidity in vehicles,
home appliances, and airplanes among others.
TE's offer of $86 per share for each Measurement Specialties
share represents a premium of a little over 10 percent to the
stock's closing price on Wednesday.
Measurement Specialties' stock rose in after-hours trading
to trade slightly higher than the offer price, while TE's shares
were largely unchanged from their close of $61.94.
The deal is worth $1.37 billion, excluding debt, based on
15.9 million Measurement Specialties shares outstanding as of
TE got 41 percent of its 2013 revenue from its business that
makes electronic parts as well as brake and speed sensors for
the auto industry.
Measurement Specialities' revenue increased 19 percent to
$412.7 million for the year ending March 31, 2014.
TE said it expects adjusted profit to rise in the mid-single
digits in the first year after the deal is completed.
It expects to fund the deal through cash and additional debt
and expects it to close in calendar 2014.
TE's financial advisers were Citi and Centerview Partners
LLC and legal counsel was Davis Polk & Wardwell LLP.
Barclays was the financial adviser for Hampton,
Virginia-based Measurement Specialties, while DLA Piper was
(Reporting by Ankit Ajmera in Bangalore; Editing by Simon
Jennings and Savio D'Souza)