Sensata Technologies, an American industrial technology company, has announced that it has entered into an agreement with Pacific Industrial Co., Ltd. to sell its valves business to the latter company for a total enterprise value of approximately USD $173 million. The proposed transaction is subject to customary legal and regulatory requirements and is expected to close in the third quarter of 2018.
Sensata’s valves business manufactures mechanical valves for pressure applications in flow control and tires, and assembles tire hardware aftermarket products with manufacturing locations in both the United States and Europe. The valves business was acquired as part of Sensata’s acquisition of the Schrader group of companies in 2014. For the full year 2017, the business generated approximately $117 million in revenue and $20 million in adjusted EBIT, which excludes intercompany transactions. Sensata’s Tire Pressure Monitoring Business and the Global TPMS Aftermarket business (Schrader Performance Sensors) are not part of this transaction and will remain with Sensata.
Pacific is an industrial valves manufacturer based in Ogaki, Japan with manufacturing and sales operations in the U.S., Taiwan, South Korea, Thailand, China and Belgium. The Pacific brand has been established as a leader in quality and technology in overseas markets, particularly in Asia, and this move reinforces Pacific’s strategy to grow its presence in Europe and the Americas.