Madison Dearborn Partners has agreed to sell the Schrader group of companies, which makes tire pressure monitoring sensors, for a total enterprise value of $1 billion to Sensata Technologies Holding.
The firm acquired Schrader in 2012 for $505 million, which was jointly owned by CPPIB and Onex. The purchase price also included a small equity stake in the parent of the purchasing company. Schrader did not have any other liquidity events during Madison Dearborn’s ownership.
The purchase price represents less than a 10x multiple on estimated 2015 earnings before interest, taxation, depreciation and amortization, Sensata said in a statement. Schrader is expected to generate about $550 million in revenue this year, according to Sensata.
Schrader employs 2,500 people globally and has sales and engineering offices in the U.S., UK, Germany, China, Japan and South Korea, and manufacturing facilities in the U.S., UK, France, Brazil and China.
The deal is subject to regulatory approvals and is expected to close in the fourth quarter. Barclays Bank and Morgan Stanley Senior Funding have agreed to provide debt financing to support the deal. Centerview Partners worked as financial advisor to Sensata, with Skadden, Aprs, Slate, Meagher & Flom working as legal advisor to Sensata.
Barclays, Citigroup and Guggenheim Securities worked as financial advisors and Kirkland & Ellis worked as legal advisors to Schrader International.
Photo courtesy of Shutterstock.Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.