Equity Firm Finalizes Schrader Acquisition


The acquisition of tire pressure monitoring systems (TPMS) maker Schrader international Inc. by a private equity firm is a done deal.

Chicago-based equity firm Madison Dearborn Partners Global VI-A L.P. said it and members of Schrader’s management team have, through a new company formed for the buyout, completed the acquisition of Schrader from parent company Pinafore Holdings B.V. (formerly known as Tomkins P.L.C.) In March the companies put a price tag of about $505 million on the purchase.
The Schrader division manufacturers TPMS, valve products and tire hardware and related accessories for both OE and aftermarket customers. It had fiscal year 2011 sales of about $451 million and adjusted pre-tax operating income of about $76 million. Denver-based Schrader generates nearly two-thirds of its annual revenue from sales in North America, according to Pinafore.
Schrader President and CEO Hugh Charvat said that in Madison Dearborn, “we have outstanding partners to work with as we continue to grow our global business. Madison Dearborn shares our belief that Schrader’s leadership position in key markets, backed by strong product lines such as TPMS and customer-engineered valves, is the result of our differentiation in the markets we serve.”
“Our global positioning, matched with our scalable growth plan, makes Schrader a very unique and strong company.”
Tom Souleles, managing director at Madison Dearborn, called Schrader a company “that has distinguished itself in global markets, driven by strong domestic and international OEM demand, a large and growing aftermarket and regulatory requirements for its TPMS technology.”
Schrader has operations in more than 50 countries, including either factories, 10 sales and engineering support sites and give technical development centers. The company was founded in 1844 by August Schrader. in the 1890s he and his son George invented the pneumatic tire valve. Formed in 1992, Madison Dearborn said it has raised six funds with aggregate capital of more than $18 billion.

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