Texas Instruments Incorporated (TI) signed a definitive agreement to sell its Sensors & Controls business to affiliates of Bain Capital, LLC, a global private equity investment firm, for U.S. $3.0 billion in cash.
Sensors & Controls, headquartered in Attleboro, Massachusetts, U.S., supplies engineered sensors and controls to the appliance, climate control, industrial, lighting, and other markets. It has annual revenue exceeding $1 billion and has about 5,400 employees in the Americas, Europe and Asia. The sale does not include the radio frequency identification (RFID) systems operations, which remain part of Texas Instruments.
"This agreement is about unlocking value," said TI president and CEO Rich Templeton. "TI will intensify its focus on our high-growth core digital signal processing and analog semiconductor opportunities, while Sensors & Controls will have greater access to the investment and strategic resources it needs to fuel its future growth.""
"Sensors & Controls is a market leader that enjoys long-standing customer relationships and is geographically diversified with greater than 50 percent of its sales generated outside North America," said Steve Zide, a managing director at Bain Capital. "We're enthusiastic about Sensors & Controls' future, and look forward to supporting the management team's plan to continue the company's growth and realize its long-term potential." Bain Capital is said to have a strong track record of purchasing non-core divisions of large, multinational companies and partnering with the management team and employees to build significant value.
Thomas Wroe, Jr., president of Sensors & Controls, and the current management team will continue to lead the organization. "We are eager to start this new chapter in our history," said Wroe. "We have made tremendous strides improving profitability while growing the business. This transaction will allow us to accelerate our growth and serve our customers more effectively."
TI's board of directors has approved the sale, which is expected to be completed in the first half of 2006, contingent upon regulatory approvals.
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