TE Connectivity Ltd. (NYSE: TEL) said it has struck an agreement to purchase specialist connector maker Seacon Group for $490 million as part of ongoing plans to expand its offerings to companies serving the military marine and general marine industry.
The Harrisburg, Pa-based company, one of the world’s biggest supplier of connectors and solutions to the electronics industry, said the purchase would help broaden its offerings to companies in the oil and gas industry and complement its previous acquisition of the Deutsch Group SAE in 2011. (See: TE Connectivity to Buy Deutsch Group for $2bln).
With the Seacon acquisition, TE Connectivity continues its program of expanding offerings into wider segments of the industrial and manufacturing sectors. The Seacon deal would help the company leverage existing products into the marine, oil and gas sector and further deepen its relationships with OEMs serving these markets, according to company executives.
“The acquisition of the SEACON group expands TE’s position as a leader in connectivity solutions for harsh environments and significantly strengthens our position in the high-growth oil and gas industry,” said Tom Lynch, TE Connectivity Chairman and CEO. “We are excited by the addition of the SEACON group because it combines their fiber optic capability, TE’s cable product line and the power connector range from our Deutsch acquisition to create a leading product offering for undersea applications. We expect to accelerate our growth with this acquisition in this very attractive sector by leveraging TE’s scale and geographic breadth to support more customers around the world.”
TE is scheduled to announce its latest quarter results on April 23 and is expected to discuss the Seacon acquisition and other strategic moves during a conference call later that day.