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Amphenol Closes USD 1.7bn Acquisition of MTS Systems
Thursday 08 April 2021

US-based interconnect, antenna and sensor solutions company Amphenol Corp. (NYSE: APH) has closed the acquisition of US-based MTS Systems Corp. (NASDAQ: MTSC), a supplier of advanced test systems, motion simulators and precision sensors, in a transaction valued at USD 1.7bn, the company said.

Amphenol acquired MTS for USD 58.50 per share in cash, including the assumption of outstanding debt and liabilities, net of cash. The transaction will be financed through a combination of borrowings under Amphenol's existing credit and commercial paper facilities as well as cash on hand.

Amphenol expects the MTS Sensors business to add approximately USD 350m in sales in the first twelve months after closing.

As previously disclosed, MTS Sensors is expected to be USD 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.

As previously reported, Amphenol has entered into an agreement to sell the MTS Test and Simulation business to Illinois Tool Works Inc. (NYSE: ITW).

The agreed sale price for the transaction is USD 750m, subject to certain post-closing adjustments and excluding transaction-related expenses.

The sale of the Test and 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 and Simulation business as a discontinued operation.

Centerview Partners LLC is serving as Amphenol's financial advisor for the transaction and Latham and Watkins, LLP is acting as its legal advisor. J.P. Morgan Securities LLC and Evercore are serving as MTS's co-financial advisors and Sidley Austin LLP is acting as its legal advisor.

Amphenol Corp. is a designer, manufacturer and marketer of electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed speciality cable.

MTS Systems Corp.'s testing and simulation hardware, software and service solutions help customers accelerate and improve their design, development and manufacturing processes and are used for determining the mechanical behavior of materials, products and structures.
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Date Published: 08/04/2021

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