Monday, December 24, 2012
CTS announces acquisition of D&R Technology
USA: CTS Corp. announced the acquisition of D&R Technology (D&R), a privately-held company with annual sales of approximately $50 million. D&R is a leading manufacturer of custom designed sensors, switches and electromechanical assemblies primarily serving the automotive light-vehicle market.
CTS acquired D&R for a cash purchase price of approximately $63.5 million. Management expects the transaction to be accretive to CTS’ earnings in the first year.
The synergistic acquisition significantly expands CTS’ strategic automotive sensor product platform with new customers and a broader product portfolio. The acquisition will also further diversify CTS’ Components and Sensors segment and bring new growth opportunities from sensor applications for safety systems and vehicle chassis management. Additionally, D&R brings strong sensor design and development engineering capabilities to complement CTS’ world-class engineering team.
D&R, founded in 1998, operates Lean Manufacturing facilities in Carol Stream, Illinois and Juarez, Mexico, with approximately 400 employees. D&R specializes in building advanced technology products that provide industry-leading and application-specific solutions.
Key products include non-contacting chassis height position sensors, seat belt tension sensors, seat belt buckle switches and anti-lock braking system (ABS) wheel speed sensors. Newer products currently growing include seat track position sensors and current sensors for electric and hybrid vehicles. D&R has been widely recognized by customers for quality performance, including Flawless Launch Awards.
Vinod Khilnani, CTS chairman and CEO, stated: “This is a significant strategic acquisition for CTS. We are delighted to welcome D&R into the CTS family. It is an excellent fit and a synergistic addition to our faster growing Components and Sensors segment, bringing exciting new growth opportunities.”