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August 18, 2014
10:55 EDTSTSensata climbs higher after agreeing to buy Schrader International for $1B
Shares of Sensata Technologies (ST), an industrial technology company involved in the sensor and control market, are climbing higher after announcing plans to buy Schrader International, a privately held company that makes tire pressure monitoring sensors. WHAT'S NEW: Sensata's Sensata Technologies B.V. unit has agreed to acquire Schrader from Madison Dearborn Partners for $1B. Schrader, which is based in Denver, Colorado, and employs 2,500 people globally, is expected to generate about $550M in revenue this year, according to Sensata. The agreement is subject to regulatory approval and is expected to close in Q4. Sensata Chief Financial Officer Paul Vasington expects Schrader to be 13c-16c dilutive to adjusted earnings per share in 2014 and 18c-21c accretive in 2015. Sensata sees Schrader providing 50c-55c of accretion after integration and debt pay-down and provide an additional 18c-22c accretion when China ramps adoption of TPMS. WHAT'S NOTABLE: During the company's conference call discussing the Schrader transaction, Sensata said that it aims to double revenue from 2012-2017. The company said that the acquisition of Schrader strengthens the firm's ability to penetrate the $80B Total Sensor market. Due to the deal, the company said that combined business cash flow will pay down debt and return it to a target net leverage ratio of two times to three times within eighteen months. Sensata intends to finance the acquisition through issuance of debt. The company expects its investments so far this year will add $1 of incremental earnings growth to shareholders. Sensata noted that the acquisition will create "significant" shareholder value. The company says that it expects the agreement to incur $4M-$8M of integration costs annually for next three years beginning in FY15. PRICE ACTION: During morning trading, shares of Sensata were up $2.92 or 6.32% to $49.09.
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September 16, 2014
05:41 EDTSTSTMicroelectronics to sell certain products to MegaChips
MegaChips Technology America announced that following the signature of an agreement with STMicroelectronics (STM, ST) and final closing on September 2, it has acquired 9 smart connectivity products based on DisplayPort technology that ST decided to discontinue last year, along with its related assets, business and products in development. During the transition, ST and MegaChips ensured continuity of products and services to customers. A number of employees engaged in product development and marketing in relation to the acquired business from ST, joined MegaChips America. This group included Mr. Alan Kobayashi, currently the chair of VESA, who joined MegaChips America as a Fellow and Product Development Manager.
September 11, 2014
10:00 EDTSTOn The Fly: Analyst Initiation Summary
Today's noteworthy initiations include: Airgas (ARG) initiated with a Neutral at Northcoast... CBOE Holdings (CBOE) initiated with a Buy at Deutsche Bank... CME Group (CME) initiated with a Buy at Deutsche Bank... Colfax (CFX) initiated with a Neutral at Northcoast... Corporate Office Properties (OFC) initiated with an Overweight at Capital One... Edwards Lifesciences (EW) initiated with a Buy at Sterne Agee... Energen (EGN) initiated with a Buy at Deutsche Bank... Goodrich Petroleum (GDP) initiated with an Outperform at Cowen... GreenHunter Resources (GRH) initiated with a Hold at Stifel... GrubHub (GRUB) initiated with a Market Perform at Barrington... Illinois Tool Works (ITW) initiated with a Neutral at Northcoast... IntercontinentalExchange (ICE) initiated with a Hold at Deutsche Bank... JD.com (JD) initiated with a Buy at Brean Capital... Lincoln Electric (LECO) initiated with a Buy at Northcoast... Live Nation (LYV) initiated with a Buy at Jefferies... Medtronic (MDT) initiated with a Neutral at Sterne Agee... Midstates Petroleum (MPO) initiated with a Market Perform at Cowen... NASDAQ (NDAQ) initiated with a Hold at Deutsche Bank... Newfield Exploration (NFX) initiated with an Outperform at Iberia... Newpark Resources (NR) initiated with an Outperform at Credit Suisse... Nuverra Environmental (NES) initiated with a Buy at Stifel... Palo Alto (PANW) initiated with a Buy at Roth Capital... Petrobras (PBR) initiated with an Outperform at Cowen... RSP Permian (RSPP) initiated with a Hold at Deutsche Bank... Sensata (ST) initiated with an Equal Weight at Morgan Stanley... Stage Stores (SSI) initiated with a Neutral at Credit Suisse... Synergy Resources (SYRG) initiated with an Outperform at Cowen... TE Connectivity (TEL) initiated with an Overweight at Morgan Stanley... Twitter (TWTR) initiated with a Buy at Canaccord... Walter Investment (WAC) initiated with an Underweight at Barclays... Washington REIT (WRE) initiated with an Equalweight at Capital One... Yandex (YNDX) initiated with a Buy at Canaccord... Yara International (YARIY) initiated with a Neutral at Credit Suisse.
September 10, 2014
16:31 EDTSTSensata initiated with an Equal Weight at Morgan Stanley
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