Sensata Technologies Holding N.V. has completed the acquisition of tire pressure monitoring systems (TPMS) manufacturer Schrader International Inc. from private equity firm Madison Dearborn Partners LLC for $1 billion.
Sensata says the acquisition gives it a lead position in the global TPMS market and enhances its overall low pressure sensing range capabilities for original equipment vehicle manufacturers.
The company also says the purchase gives it:
* access to Schrader’s well-established presence in the aftermarket service and repair channel, including Schrader’s complete TPMS portfolio of replacement sensors, service packs, diagnostic and handheld tools, air compressors and air accessories, and tire hardware product lines; and
* growth opportunities to leverage the aftermarket channel for its pressure, position, speed and temperature sensing OE products.
“Schrader’s aftermarket expertise offers us tremendous upside with their current positioning, customer base, product portfolio and distribution routes. We believe there are growth opportunities for specific products within the Sensata sensing range that can be leveraged in the global aftermarket,” says Steve Beringhause, senior vice president of Sensata Technologies Sensor Group.
Frank Frederick, vice president of sales and marketing for the North American aftermarket, says Sensata’s aftermarket customers will continue to benefit not only from the increased demand for TPMS service and repair, but also from the clear Schrader brand reputation for quality, hands-on training and technical innovation. “It also opens up additional opportunities for Sensata to leverage Schrader’s long-standing investment in our customer base, aftermarket infrastructure and overall team.”
Sensata says TPMS continues to grow globally as an important and standard safety system, similar to seat belts and air bags. Legislation continues to drive the global TPMS market. Consumer-oriented TPMS feature sets are evolving as well, with vehicle manufacturers integrating advanced pressure-by-position dashboard displays, new options such as tire fill alert (horn chirp and lights flash when proper pressure is achieved while airing up), as well as Schrader auto-location technology which assists in the overall system design.
Schrader is headquartered in Denver, Colo.For more information visit www.SchraderInternational.com.