ATTLEBORO – Sensata Technologies has agreed to acquire Honeywell International’s automotive on-board sensors business for $140 million in cash, the company announced on Oct. 28.
The business makes crankshaft, transmission and wheel speed sensors, among other products, for automakers around the world, the Associated Press said. The automotive on-board business takes in about $130 million annually in sales.
“This acquisition further expands our leadership in the global automotive sensors market and complements our already strong organic growth in the power train segment for our existing pressure products,” said Tom Wroe, Sensata Technologies chairman and CEO.
“It adds new capabilities in light vehicle speed and position sensing and builds Sensata’s market share in Asia – specifically in China, the world’s fastest growing automotive sensors market.”
Sensata expects to be able to fund the purchase from available cash resources; the company noted the acquisition should not have an impact on 2010 earnings except for $3 million to $4 million in transaction costs which will have an impact on fourth-quarter earnings. Total transaction costs are estimated between $22 million to $24 million, to be assumed in 2011 and 2012.
The deal is subject to regulatory approval and is slated to close in 2011. Integration is seen taking between 18 to 24 months.
