Netherlands-based Sensata Technologies has reached an agreement to acquire Sensor-NITE from the Elex Group for approximately $325m.
Sensor-NITE is a Tier 1 supplier of high-temperature exhaust gas sensors for the automotive industry.
Its sensors are used for exhaust gas temperature monitoring in exhaust gas recirculation systems, diesel particulate filters, selective catalytic reduction, turbocharging systems, oxidation catalysts, NOx traps and fuel reformers.
The business is based in Tessenderlo, Belgium, with operations and manufacturing in Sofia and Botevgrad, Bulgaria.
Sensata expects to have sufficient cash on its balance sheet to fund the transaction, but may also consider using debt based on the favourability of market conditions. Regardless of how the deal is financed, Sensata expects the transaction to be accretive to earnings.
It further expects that the acquisition will contribute to both net revenue and adjusted net income growth in 2011 and beyond. Sensor-NITE recorded revenues of approximately $135m in 2010.
The transaction, which is subject to regulatory review and other customary closing conditions, is expected to close in the third quarter.