“We are excited to have completed our acquisition of MTS and to welcome the talented MTS team to the Amphenol family,” says R. Adam Norwitt, Amphenol’s President and CEO. “The combined strength and breadth of our companies’ highly complementary sensor product portfolios will allow us to offer our customers an expanded array of innovative technologies across multiple end markets. We look forward to the new opportunities created by the collective strengths of Amphenol and MTS Sensors as we further capitalize on the long-term growth potential of the electronics revolution.”
Amphenol expects the MTS Sensors business to add approximately $350 million in sales in the first twelve months after closing. As previously disclosed, MTS Sensors is expected to be $0.05 accretive to Amphenol’s earnings per share in the first twelve months after closing, which excludes acquisition-related expenses and reflects the Company’s recent 2-for-1 stock split. In connection with the close of the transaction, MTS common stock will cease to trade on the NASDAQ.
Amphenol has previously entered into an agreement to resell the MTS Test & Simulation business to Illinois Tool Works Inc. (NYSE: ITW). The agreed sale price for the transaction is $750 million, subject to certain post-closing adjustments and excluding transaction-related expenses. The sale of the Test & Simulation business is expected to close following the receipt of all required regulatory approvals. Until that time, Amphenol will account for and report the Test & Simulation business as a discontinued operation.
As R. Adam Norwitt, Amphenol’s President and CEO, explains, “After reviewing the MTS Test & Simulation business and evaluating a range of options to ensure its future success while maximizing value for Amphenol shareholders, we determined that selling it to ITW, with ITW’s complementary capabilities and strategic focus, is the best outcome for all parties.”
“MTS’s Test & Simulation business is highly complementary to our existing Test & Measurement and Electronics business and positions us in new and attractive industry verticals,” says E. Scott Santi, ITW’s Chairman and CEO. “This acquisition continues our strategy of driving solid growth and best-in-class returns in businesses where highly innovative, customer-focused solutions are required. We look forward to welcoming the MTS Test & Simulation team to ITW.”
Amphenol Corporation is one of the world’s largest manufacturers of electrical, electronic and fiber optic connectors and interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable. When Amphenol takes control of MTS Systems Corporation's business, they will effectively be the new owner of PCB Piezotronics and Larson Davis.
PCB Piezotronics specializes in the design and manufacture of force, torque, load, strain, pressure, acoustic and vibrations sensors. The pioneer of ICP technology, PCB's instrumentation is used for test, measurement, monitoring, and control requirements in many different industries. Also the result of multiple acquisitions and mergers, within MTS and before, PCB Piezotronics, has four major divisions, all of which offer targeted sensor technologies. This includes PCB Piezotronics's core business division with piezoelectric, ICP and sensors; IMI Sensors, for industrial vibration, pressure sensors and accelerometers; and Larson Davis, with its full line of noise and vibration measurement instrumentation from sound level meters to outdoor noise monitoring systems and from personal noise dosimeters to human vibration meters.
Larson Davis was founded in 1981, as a manufacturer of precision acoustic test and vibration measurement instrumentation. In 1999, Larson Davis became a division of PCB Piezotronics, a wholly owned subsidiary of MTS Systems Corporation since 2016.
Other PCB companies include Accumetrics digital telemetry systems, The Modal Shop, structural vibration and acoustic sensing systems and services for various applications, Endevco test and measurement solutions, and Modern Microstructures, a pure-play foundry specializing in the fabrication of custom MEMS and thin-film devices.
www.pcb.com | www.larsondavis.com
www.itw.com
www.amphenol.com
