Sensata Technologies Enters into Agreement to Sell Valves Business to Pacific Industrial Co.

May 21, 2018

SWINDON, United Kingdom, May 22, 2018 (GLOBE NEWSWIRE) -- Sensata Technologies (NYSE:ST), an industrial technology company, today announced that it has entered into an agreement with Pacific Industrial Co., Ltd. (“Pacific”) to sell its valves business for a total enterprise value of approximately $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 tires and fluid control, and assembles tire hardware aftermarket products with manufacturing locations in 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.

“Sensata provides sensing solutions for mission-critical, complex solutions where we have significant differentiation, leading margins and secular growth,” said Martha Sullivan, President & CEO of Sensata. “The valves business performs well for customers and has significantly improved its operating performance since 2014. However, it does not align to our secular growth strategy and will be better positioned as part of Pacific to further expand its tire valves business. Additionally, by divesting the valves business we can further fund our capital deployment initiatives, particularly as it relates to the repurchase of Sensata shares.”

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.

Update to 2018 Financial Guidance

Sensata expects to offset any divested profits through a combination of share repurchases and stronger operational performance. As a result, Sensata is maintaining its full year 2018 adjusted EPS guidance of $3.57 to $3.73. The Company will provide more detailed updates to its guidance at the next regularly scheduled earnings release and conference call.

About Sensata Technologies

Sensata Technologies is one of the world’s leading suppliers of sensing, electrical protection, control and power management solutions with operations and business centers in 12 countries. Sensata’s products improve safety, efficiency and comfort for millions of people every day in automotive, appliance, aircraft, industrial, military, heavy vehicle, heating, ventilation, and air conditioning, data, telecommunications, recreational vehicle, and marine applications. For more information, please visit Sensata’s website at www.sensata.com.

Safe Harbor Statement
Certain statements in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the Company’s current expectations regarding the timing for closing of the transaction and its uses of proceeds. These forward- looking statements are based on certain assumptions and reflect our company’s current expectations. As a result, forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the parties' ability to receive regulatory approvals and satisfy conditions to closing as well as other factors discussed in materials that Sensata from time to time files with, or furnishes to, the U.S. Securities and Exchange Commission. There is no assurance that a transaction involving all or part of the valves business will be completed or that other events described in any forward-looking statement will materialize. Except as may be required by applicable law, the Company disclaims any obligation to update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made; and we undertake no obligation to publicly update or revise any forward-looking statements, whether to reflect any future events or circumstances or otherwise. See “Risk Factors” in the Company's 2017 Annual Report on Form 10-K and other public filings and press releases. Copies of our filings are available from our Investor Relations department or from the SEC website, www.sec.gov.

Contacts:

Investors:                                                   Media:
Joshua Young                                            Alexia Taxiarchos
(508) 236-2196                                          (508) 236-1761
Joshua.young@sensata.com                    ataxiarchos@sensata.com

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Source: Sensata Technologies

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