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News Breaks
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.
News For ST From The Last 14 Days
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January 15, 2015
12:10 EDTSTAxalta Coating names Aaron Weis as VP/Chief Information Officer
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January 13, 2015
10:00 EDTSTOn The Fly: Analyst Initiation Summary
Today's noteworthy initiations include: American Midstream Partners (AMID) initiated with a Buy at Wunderlich... Ameriprise (AMP) initiated with a Buy at Deutsche Bank... Applied DNA Sciences (APDN) initiated with a Buy at Maxim... Axalta Coating (AXTA) initiated with an Outperform at RW Baird... Bellicum Pharmaceuticals (BLCM) initiated with a Buy at Citigroup... Bonanza Creek (BCEI) initiated with a Hold at Deutsche Bank... ConocoPhillips (COP) initiated with an Underweight at JPMorgan... Core-Mark (CORE) initiated with a Buy at Jefferies... Dick's Sporting (DKS) initiated with an In-Line at Imperial Capital... Dynegy (DYN) reinstated with an Overweight at Barclays... Gannett (GCI) initiated with an Outperform at Wells Fargo... Gran Tierra (GTE) initiated with an Outperformer at CIBC... HomeAway (AWAY) initiated with an Outperform at RBC Capital... Juno Therapeutics (JUNO) initiated with a Neutral at Goldman... MakeMyTrip (MMYT) initiated with a Buy at BofA/Merrill... PDC Energy (PDCE) initiated with a Hold at Deutsche Bank... PNC Financial (PNC) initiated with a Hold at Evercore ISI... Proofpoint (PFPT) initiated with a Buy at Summit Research... Sensata (ST) initiated with a Buy at Stifel... Southcross Energy Partners (SXE) initiated with a Buy at Wunderlich... Suncor (SU) initiated with an Overweight at JPMorgan... U.S. Bancorp (USB) initiated with a Hold at Evercore ISI... United Financial (UBNK) initiated with a Sector Perform at RBC Capital... Vantiv (VNTV) initiated with an Outperform at Keefe Bruyette... Wells Fargo (WFC) initiated with a Hold at Evercore ISI.
January 12, 2015
16:16 EDTSTSensata initiated with a Buy at Stifel
Target $60.

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