Measurement Specialties (MEAS) to be Acquired by TE Connectivity

Shares of Measurement Specialties Inc. (MEAS) were up + 8.15 or +10.45 percent to $86.15 per share in pre market trading early Thursday, after news released late Wednesday that TE Connectivity Ltd. (TEL) and Measurement Specialties had entered into a definitive agreement for the acquisition of Measurement Specialties by TE Connectivity for $86.00 per share.

Measurement Specialties Inc. stock closed at $78.00 per share, up +0.25 or +0.32 percent in Wednesdayâ s regular trading session.
Hampton, Virginia based Measurement Specialties Inc. is a global manufacturer of sensor and sensor based systems. The company sells its products to original equipment manufacturers and other end users. Measurement Specialties has a broad portfolio of sensors that measure temperature, humidity, air pressure, vibration and acceleration in automobiles, airplanes and home appliances. Schaffhausen, Switzerland based TE Connectivity was originally Tyco Electronics Ltd. and along with Covidien, were spun off of Tyco International (TYC) on June 29th, 2007. The company designs and manufactures a variety of components for automotive, aerospace, defense, medical, marine and energy and lighting manufacturers worldwide. TE Connectivity operates in over 50 countries and employs almost 100,000 worldwide. TE Connectivity stock closed at $61.94, up +0.16 or +0.26 percent in Wednesdayâ s regular trading session. The acquisition of Measurement Specialties by TE Connectivity was announced after the close yesterday and was for $86.00 per share in cash and additional debt. The deal is worth approximately $1.37 billion or $1.7 billion including debt and will significantly improve TEâ s sensor business. TE expects its adjusted profit to rise in the middle single digits after one year and to close the deal before the end of this year. The combination of Measurement Specialtiesâ sensor and sensor systems and TEâ s existing sensor business will make TE one of the biggest manufacturers of sensor equipment in the world. In June, Measurement Specialties announced an annual revenue increase of 19 percent to $412 million for its fiscal year ended March 31st, 2014. The company reported fourth quarter profits of $9.3 million, with an 18 percent increase in sales to $105 million. For 2015, Measurement is expecting revenue of $540 million. Frank Guidone, Chief Executive Officer of Measurement Specialties, said in a press release, â

Published on Jun 19, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

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