Littelfuse (NASDAQ: LFUS ) has signed an agreement to acquire Key Safety Systems' Hamlin subsidiary for $145 million in cash, Littelfuse announced Monday.
The deal will add Hamlin's portfolio of sensors for the automotive industry to Littelfuse's holdings, which Littelfuse CEO Gordon Hunter called "a major step forward in our strategy to build a global, automotive sensor platform." Hamlin also makes sensors for the electronics and industrial markets.
Hamlin is headquartered in Wisconsin with manufacturing, engineering, and sales offices in the U.S., Mexico, Europe, and Asia. Hamlin had sales of approximately $76 million in 2012.
Littelfuse expects the acquisition to help it achieve double-digit sales growth going forward, and to add $0.35 per share in profit in 2014.
The $145 million Littelfuse is paying for Hamlin works out to a 1.9-times-sales valuation on the deal, a slight discount to the 2.2 price-to-sales valuation Littelfuse's own shares currently command.
The transaction, which is subject to antitrust oversight and other closing conditions, is expected to close by the end of May.