SCHAFFHAUSEN, Switzerland, April 2, 2014 /PRNewswire/ -- TE Connectivity Ltd. (NYSE: TEL) today announced that it has signed a definitive agreement to acquire the SEACON group, a leading provider of underwater connector technology and systems, for $490 million in cash. The SEACON group serves the military marine and sub-sea sectors for remotely operated vehicles (ROV) / autonomous underwater vehicles (AUV), oil and gas, environmental and oceanographic applications.
"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."
Patrick Simar, President and Chairman of the Board, SEACON group, said, "We have given careful thought about how best to position the company for a new phase of growth and are pleased to be joining forces with TE, a true industry leader. TE has achieved tremendous success by focusing on providing the highest quality, most innovative connectivity solutions to customers across a broad range of industries and geographies. We have known TE for many years and recognize that they share our commitment to providing both best-in-class solutions to our customers, as well as great opportunities for our people."
The sale is subject to certain regulatory approvals and other closing conditions and is expected to close in the company's current fiscal year. The company will further discuss the acquisition on its next earnings call, scheduled for April 23, 2014.
ABOUT TE CONNECTIVITY
TE Connectivity (NYSE: TEL) is a $13 billion world leader in connectivity. The company designs and manufactures products at the heart of electronic connections for the world's leading industries including automotive, energy and industrial, broadband communications, consumer devices, healthcare, and aerospace and defense. TE Connectivity's long-standing commitment to innovation and engineering excellence helps its customers solve the need for more energy efficiency, always-on communications and ever-increasing productivity. With nearly 90,000 employees in over 50 countries, TE Connectivity makes connections the world relies on to work flawlessly every day. To connect with the company, visit: www.TE.com.
This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. In addition to our future financial condition and operating results, the forward-looking statements in this release include statements addressing our ability to consummate the acquisition of the SEACON group (the "SEACON Acquisition"), including the receipt of regulatory approvals; and our ability to realize projected financial impacts of and to integrate the SEACON Acquisition. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the risk that the SEACON Acquisition may not be consummated; the risk that a regulatory approval that may be required for the SEACON Acquisition is not obtained or is obtained subject to conditions that are not anticipated; the risk that revenue opportunities, cost savings and other anticipated synergies from the SEACON Acquisition may not be fully realized or may take longer to realize than expected; the risk that the SEACON group's operations will not be successfully integrated into ours; business, economic, competitive and regulatory risks, such as conditions affecting demand for products, particularly in the automotive industry and the telecommunications networks and consumer devices industries; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity Ltd.'s Annual Report on Form 10-K for the fiscal year ended Sept. 27, 2013 as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.
SOURCE TE Connectivity Ltd.