UK automotive specialist First Technology, the world’s leading maker of crash test dummies, is to buy Control Devices of the US in a $145.1m (£89.2m) deal.
First Technology chairman Dr Fred Westlake said the acquisition fitted the company’s strategy of targeting ‘specialist niches where we can command a large market share’ and where profit margins are higher than the automotive sector generally.
The company had been looking for an acquisition for about two years and had been talking to Control Devices for eight months.
About 60% of Control Devices’ sales are in the automotive sector. Westlake said its products, which include circuit breakers, electronic sensors and electronic ceramic parts, complements First Technology’s range, which includes crash sensors and fuel pump cutouts.