Sensata buys auto-parts supplier Schrader for $1 billion E-mail Tweet Facebook Google Plus Linkedin Share icons by John Kell @FortuneMagazine August 18, 2014, 8:04 AM EDT Sensata Technologies has agreed to pay $1 billion to acquire auto-parts maker Schrader Group, a deal to tap the rapidly growing low-pressure sensor market. The deal is an effort by Sensata ST to tap the tire pressure monitoring systems mark, a safety feature now standard on all cars in North America and growing globally in Europe and Asia. Fuel economy and safety regulations are fueling demand for those systems, also known as TPMS. Schrader’s sales are expected to generate about $550 million in revenue this year, and the deal is expected to add to Sensata’s earnings. The company employs 2,500 globally. Consolidation appears to be popular this year in the auto parts industry, as this deal highlights. If a proposed $10 billion acquisition of TRW Automotive Holdings closes, it would nearly double the already robust $13 billion in M&A in the auto parts industry so far in 2014. The sale also marks the end of a quick period of ownership by private-equity firm Madison Dearborn Partners, which bought Schrader in 2012 for a reported $505 million in a deal the firm lauded due to Schrader’s broad exposure to the automotive, industrial, mining and other manufacturing markets. At the time of the prior Schrader takeover, Chicago-based Madison Dearborn said Schrader’s products could be found in more than half of all global vehicle platforms fitted with direct tire pressure monitoring systems. The Sensata-Schrader deal is expected to close in the fourth quarter.