Measurement Specialties buys Entran Devices, Encoder Devices
Fairfield, NJ—Measurement Specialties Inc. (MSI) reports that it recently acquired Entran Devices Inc. and Entran SA. for $9.5 million, including $6 million in cash, assumption/discharge of $1.5 million in debt, and $2 million in deferred payments.
Fairfield, NJ— Measurement Specialties Inc. (MSI) reports that it recently acquired Entran Devices Inc. and Entran SA. for $9.5 million, including $6 million in cash, assumption/discharge of $1.5 million in debt, and $2 million in deferred payments.
'Entran represents an ideal acquisition opportunity for MSI,' says Frank Guidone, MSI's CEO. 'Entran provides concentration in niche sensor markets, and the MSI/Entran combination will yield attractive synergies. On a run-rate, stand-alone basis, we expect Entran to contribute approximately $11 million in net sales and $0.8 million in pre-tax income. Additionally, we anticipate post-close synergies to generate an incremental $1.0 to $1.5 million of annual pre-tax income in fiscal 2006.'
Located in Fairfield, NJ, and Les Clayes-sous-Bois, France, Entran designs and manufactures acceleration, pressure and force sensors sold primarily to the automotive crash test and motorsport racing markets. Their primary products include piezo-resistive accelerometers sold to various customers for use in destructive automotive crash testing, both on crash dummies and on the car itself. Entran sells its products to a wide variety of OEM and end-user customers, including Peugeot, Ferrari, Hyundai/Kia, Daimler-Chrysler and Toyota Motorsport.
William Caplan, Entran's president, adds that, 'The combination of MSI's technology and low-cost capability coupled with Entran's 30-year history providing high-end sensor applications pro-vides a unique opportunity for market expansion. The increased production capacity provided by MSI will greatly enhance Entran's ability to meet expanding customer needs.'
MSI designes and manufacturer of sensors, and sensor-based consumer products. The firm produces sensors that use advanced technologies to measure precise ranges of physical characteristics, including pressure, motion, force, displacement, angle, flow, and distance. Measurement Specialties uses multiple advanced technologies, including piezoresistive, application specific integrated circuits (ASICs), micro-electromechanical systems (MEMS), piezopolymers, and strain gages to allow their sensors to operate precisely and cost effectively.
In other news, MSI also recently acquired Encoder Devices LLC for $4.4 million, which in-cludes $4 million in cash, plus a deferred payment of $0.4 million.
'We're alsoue, and be cash flow neutral. However, given the current and pending customers/applications, we anticipate sales to grow rapidly, and for the group to materially contribute to MSI's top and bottom line.'
Located in Plainfield, IL, Encoder designs and manufactures rota-tional sensors (encoders) using magnetic encoding technology. Magnetic encoding is an emerging technology that has many cost and performance advantages over traditional optical encoders. Encoder has secured an anchor program in the fuel pump market with Gilbarco, and has several new opportunities in development. Target markets include fuel pumps, medical syringe pumps, flow meters, military applications, and through-shaft motors.
Control Engineering Daily News Desk
Jim Montague, news editor