Boston, MA 06/20/2014 (wallstreetpr) – Measurement Specialties, Inc. (NASDAQ:MEAS) is poised to join TE Connectivity Ltd (NYSE:TEL) for $1.4 billion or $1.7 billion including debt assumption. The deal values MEAS at $86 per share, which is a 10 percent premium to the closing price before the deal was announced. The transaction is expected to close this year.
Measurement Specialties is a sensor maker with manufacturing facilities in the U.S., China, Ireland, France, Switzerland and Germany. The company earned $0.56 per share on revenue of $104.90 million in the most recent quarter (4Q2014). That compared with the consensus estimate of $0.56 per share on revenue of $104.70 million. Both earnings and revenue increased on a year-over-year basis, with revenue jumping almost 18 percent for the period.
The company reported a net income of $37.8 million on sales of $412.7 million in its fiscal 2014. It reported earlier this month that it had strong bookings in 4Q, which positions it well to deliver solid earnings and revenue in fiscal 2015 with an expected improvement on the same in fiscal 2016.
Shares of the company are up more than 42 percent since the beginning of 2014.
TE Connectivity Expectant
In agreeing to acquire Measurement Specialties, Inc. (NASDAQ:MEAS), TE Connectivity believes it is making the right move for its shareholders in that it anticipates a positive impact on its earnings in the mid-single digit in the first year of the deal.
TE Connectivity, previously known as Tyco Electronics, manufactures electronic connection products for automobile, energy, consumers and broadband markets. It expects the acquisition of MEAS to support its strategy in the lucrative sensor industry.
Financing The Deal
TE Connectivity intends to fund the acquisition of Measurement Specialties, Inc. (NASDAQ:MEAS) with its own cash and additional debt. The company has been looking out for opportunities in apparent efforts to diversify operations, increase revenue and profits. It announced earlier this year plans to acquire Seacon Group, which is a company that provides connectivity solutions to the offshore oil and gas companies.
The company was spun off in 2007 from Tyco International Ltd in what was a breakup of the entity into three separate companies. It projects earnings between $3.72 and $3.84 per share on sales between $13.8 billion and $14.1 billion in for a full year.
