Tue, Feb. 2, 10:57 AM
- Continuing its M&A spree, TE Connectivity (TEL -3.1%) is buying Creganna Medical Group, an Ireland-based provider of delivery/access devices for medical device OEMs, from P-E firm Permira for $895M in cash.
- The deal is expected to close in FQ3 (calendar Q2), and will be financed via both existing cash and debt - TE is just a week removed from announcing a $350M debt offering. TE forecasts $0.03 of EPS accretion in the first full fiscal year after the deal's closing. With Creganna posting 2015 revenue of $250M, TE is paying 3.6x trailing sales.
- CEO Tom Lynch: "The acquisition of Creganna Medical is part of our well-established strategy to expand our leadership position in harsh environment applications. This transaction builds on our AdvancedCath acquisition and establishes TE as a leading supplier to the high-growth minimally invasive interventional segment." Creganna's results will be reported in TE's Industrial Solutions segment.
- In addition to AdvancedCath (acquired for $190M), TE has bought industrial sensor maker Measurement Specialties ($1.7B) and underwater connecter maker Seacon Group ($490M) in recent years. Meanwhile, the company has sold its telecom/networking equipment unit to CommScope for $3B, and its circuit protection devices unit to Littelfuse for $350M.
- TE is lower on a day the S&P is down 1.4%.
Feb. 18, 2015, 11:02 AM
- TE Connectivity (TEL -0.6%) is buying AdvancedCath, a maker of advanced catheter systems, for $190M in cash. The deal is expected to close in late March.
- AdvancedCath is expected to post 2015 sales of $60M. TE declares the purchase "complements and significantly expands TE's connectivity and sensor position in the attractive, high-growth interventional space of the medical market," and will allow it to offer more integrated medical systems. It notes the outsourced interventional device manufacturing market is growing 10%/year.
- Last year, TE bought sensor makers Measurement Specialties (for $1.7B) and AST. The company is less than a month removed from striking a $3B deal to sell its telecom/networking equipment unit to CommScope.
Jan. 28, 2015, 8:08 AM
- CommScope (NASDAQ:COMM) agrees to acquire TE Connectivity's (NYSE:TEL) telecom, enterprise and wireless businesses for $3B, in an attempt to diversify its operations and broaden its geographic reach.
- COMM says it expects more than $150M in annual savings starting in the third year after the deal closes.
- TEL says the sale will allow it to focus on connectivity and sensor markets, particularly harsh environment applications; the deal does not include TEL's subsea communications or data communications businesses.
- TEL says it will use proceeds from the sale for stock buybacks, as well as acquisitions and other investments; its board authorizes a $3B expansion of its share buyback program.
- Earlier: TE Connectivity beats by $0.08, misses on revenue
- TEL +3.6%, COMM +2.1% premarket.
Jan. 26, 2015, 7:20 PM
- TE Connectivity (NYSE:TEL) is "nearing a deal" to sell its telecom/networking equipment unit to CommScope (NASDAQ:COMM) for about $3B, the WSJ reports. A deal could be announced as soon as this week.
- The business in question, known as TE's network solutions unit, had FY14 (ended Sep. '14) sales of $2.9B (21% of TE's total revenue). For reference, CommScope's 2014 revenue consensus is only at $3.84B, and the company had a market cap of $4.06B as of today's close.
- TEL +6.1% AH to $67.00. COMM +6.4% to $23.00.
Sep. 2, 2014, 6:16 PM
- TE Connectivity (NYSE:TEL) has acquired American Sensor Technologies (AST), a maker of proprietary sensors for use in "high performance, harsh and extreme environments such as high corrosion, high and low temperatures, and toxic and hazardous materials settings." Terms are undisclosed.
- AST had 2013 revenue of $20M. The acquisition follows a June deal to purchase leading sensor vendor Measurement Specialties for $1.7B.
Jun. 18, 2014, 4:20 PM
- TE Connectivity (TEL) is buying industrial sensor maker Measurement Specialties (MEAS) for $86/share, or $1.7B after factoring net debt. The price represents a 10% premium to MEAS' Wednesday close.
- With MEAS expecting FY15 (ends March '15) revenue of $540M, TE is paying 3.1x forward sales.
- TE asserts the deal give it "a leadership position" in the sensor market, and allows it to offer "an unmatched range of connectivity and sensor solutions that are essential in a world where everything is increasingly connected."
- The deal is expected to close by year's end, to be financed with both cash and debt, and to yield mid-single digit EPS accretion in its first year. TE forecasts double-digit post-merger growth for its sensor ops.
- The purchase comes two months after a deal to buy underwater electrical connector firm Seacon for $490M.
Apr. 2, 2014, 10:46 AM
- TE Connectivity (TEL +2.7%) is acquiring the Seacon Group, a maker of underwater electrical connectors, for $490M in cash. The deal is expected to close in TE's FY14 (ends Sep. '14).
- Seacon's connectors are used in underwater/remotely-operated vehicles, as well as in oil/gas, environmental, and oceanographic applications.
- TE says the deal strengthens its position in oil/gas (a growing market), and that the combination of Seacon's fiber optic offerings with TE's cable and power connector products will "create a leading product offering for undersea applications."
Apr. 2, 2012, 11:51 AM
Nov. 30, 2011, 8:16 AM
Electrical-parts maker TE Connectivity (TEL) agrees to buy France's Deutsch Group, which specializes in harsh-environment connections, for about $2.1B from French P-E firm Wendel (WNDLF.PK). The deal will boost TE's presence in the auto, aerospace, offshore oil-and-gas, and heavy-equipment sectors. (PR)| Nov. 30, 2011, 8:16 AM