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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.
News For ST From The Last 14 Days
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October 20, 2014
05:26 EDTSTSensata reinstated with an Overweight at Barclays
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October 15, 2014
10:02 EDTSTOn The Fly: Analyst Initiation Summary
Today's noteworthy initiations include: Atwood Oceanics (ATW) initiated with a Buy at ISI Group... Baker Hughes (BHI) initiated with a Buy at Citigroup... Basic Energy (BAS) initiated with a Buy at ISI Group... C&J Energy (CJES) initiated with a Buy at ISI Group... CARBO Ceramics (CRR) initiated with a Hold at ISI Group... CHC Group (HELI) initiated with a Buy at ISI Group... Cameron (CAM) initiated with a Buy at ISI Group... Chart Industries (GTLS) initiated with a Buy at ISI Group... Core Laboratories (CLB) initiated with a Buy at ISI Group... Diamond Offshore (DO) initiated with a Sell at ISI Group... Dresser-Rand (DRC) initiated with a Sell at ISI Group... Dril-Quip (DRQ) initiated with a Buy at ISI Group... Ensco (ESV) initiated with a Buy at ISI Group... FIS (FIS) initiated with a Market Perform at BMO Capital... FMC Technologies (FTI) initiated with a Buy at ISI Group... GoPro (GPRO) initiated with a Sector Perform at Pacific Crest... Halliburton (HAL) initiated with a Buy at ISI Group... Helmerich & Payne (HP) initiated with a Neutral at Citigroup... Hercules Offshore (HERO) initiated with a Sell at ISI Group... Key Energy (KEG) initiated with a Buy at ISI Group... Maxwell (MXWL) reinstated with a Buy at Canaccord... Nabors Industries (NBR) initiated with a Buy at ISI Group... Noble Corp. (NE) initiated with a Buy at ISI Group... Oceaneering (OII) initiated with a Buy at ISI Group... Paragon Offshore (PGN) initiated with a Buy at ISI Group... Parker Drilling (PKD) initiated with a Buy at ISI Group... Patterson-UTI (PTEN) initiated with a Buy at Citigroup... Peabody (BTU) initiated with an Underperform at Imperial Capital... RPC, Inc. (RES) initiated with a Buy at Citigroup... Receptos (RCPT) initiated with a Buy at Goldman... Rowan Companies (RDC) initiated with a Buy at ISI Group... Schlumberger (SLB) initiated with a Buy at ISI Group... Sensata (ST) resumed with a Buy at Citigroup... Tidewater (TDW) initiated with a Hold at ISI Group... Transocean (RIG) initiated with a Sell at ISI Group... Weatherford (WFT) initiated with a Buy at ISI Group.
06:17 EDTSTSensata resumed with a Buy at Citigroup
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