Bain to Purchase TI Sensors & Controls Business

-- Test & Measurement World, 1/9/2006 5:51:00 AM

Texas Instruments has announced the signing of a definitive agreement to sell its Sensors & Controls business to affiliates of Bain Capital LLC a global private equity investment firm, for $3 billion in cash.

Sensors & Controls, which is headquartered in Attleboro, MA, supplies engineered sensors and controls to the appliance, climate control, industrial, automotive, lighting, and aircraft markets. With revenue exceeding $1 billion annually, Sensors & Controls has about 5400 employees in the Americas, Europe, and Asia. The sale will not include the radio-frequency identification (RFID) systems operations, which will 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.”

Thomas Wroe Jr., the 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. Completion of the sale is contingent upon customary regulatory approvals.

Bain Capital was advised on the transaction by JPMorgan Chase and the financing will be provided by Morgan Stanley, Bank of America, and Goldman Sachs. TI was advised by Morgan Stanley and a fairness opinion was provided to the company by Lazard.

Sensors & Controls, www.ti.com/corp/docs/press/company/2006/s-cfactsheet.shtml
TI, www.ti.com/corp/docs/press/company/2006/tifactsheet.shtml.