Sensata Picks Up PE-Backed DeltaTech Controls

NEW YORK (The Deal) -- Sensata Technologies Holding ST, the Dutch provider of sensors and controls for aircraft, automotive systems and electric motors, said Monday it would acquire DeltaTech Controls from private equity-backed CoActive Technologies For an enterprise value of $190 million.

The deal marks a partial exit for Greenwich, Conn., PE firm LittleJohn & Co. LLC, which inherited DeltaTech through its acquisition of CoActive Technologies from ITT Corp. on July 27, 2007, for an undisclosed price. CoActive will be comprised entirely of its C&K Components division, which provides switch technology, smart card connectors and high-reliability connectors, once the deal is completed.

Berlin-based DeltaTech makes custom electronic operator controls for the construction, agriculture, material handling, motorbike and medical industries. The company is expected to generate $125 million in revenue during 2014, implying an enterprise value-to-revenue multiple of about 1.5 times.

The acquisition is expected to be slightly accretive to earnings in 2014 and add between 11 cents and 13 cents to earnings per share once fully integrated, Almelo, Netherlands-based Sensata said in a July 7 statement.

The deal follows Sensata's Jan. 3, acquisition of Wabash Technologies Inc. from an affiliate of Sun Capital Partners Inc. for an undisclosed price, and appears to be a harbinger of more M&A to come.

"We are looking for further acquisitions," Jacob Sayer, Sensata's vice president of investor relations, said via phone. "In particular, we're looking for other sensor businesses that are closely aligned with our current business."

The company is currently talking with a wide range of potential targets that generate anywhere from a few million dollars to a few hundred million dollars in annual revenue, Sayer said.

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