DPE to exit First Sensor for approximately €117m

Connectivity and sensor products manufacturer TE Connectivity, through its German subsidiary, has agreed to launch a voluntary public tender offer for all shares of First Sensor. The transaction is valued at approximately €307m, including the assumption of First Sensor's outstanding net debt and minority interest. The management and supervisory boards of the company have announced that they support the offer.

The offer price of €28.25 per share represents a premium of 14.6% on the closing price on 24 May 2019 of €24.65. At the time of publication, First Sensor, which is listed on the Frankfurt Stock Exchange, was trading at €28.20 per share.

DPE first notified the company that it was considering selling its shares in October 2018. DPE (funds advised by Teslin Capital Management and other shareholders, which together hold approximately 67% of shares) has agreed to sell all its shares.

First Sensor will extend TE's sensors product range and will add application solutions in key growth markets, particularly in the automotive, medical technology and industrial sectors. The current CEO of First Sensor will continue in his position following the takeover, while the CFO will resign.

In 2018, the company generated sales of €155.1m and an EBITDA of €21.3m.

Previous funding
Deutsche Venture Capital (DVC) and TBG Technologie-Beteiligungsgesellschaft agreed to provide €2.05m in growth capital to First Sensor in 1999, the same year the company went public.

In 2002, First Sensor received a €4.5m investment from a consortium led by DVC. IKB Private Equity, Siemens Venture Capital (SVC) and EnjoyVenture Management also participated in the round. At the time, DVC held approximately 23% of the company's equity, IKB held a similar stake and SVC held 15%. The consortium invested another €2m in the company in 2004.

In 2011, DPE invested €33m in a capital increase transaction for a 35% share. A total of 3,312,000 shares were issued at a price of €10 per share. The capital was used for the acquisition of competitor Sensortechnics.

The firm increased its share to 40.08% in 2015.

Company
Founded in 1991, First Sensor develops and manufactures sensors such as optical, pressure and level sensors for a variety of industries, including the automotive, medical technology and industrial sectors. The company employs 800 people in multiple production locations and sales offices around the world, and is headquartered in Berlin.

People
DPE Deutsche Private Equity – Guido Prehn (partner).
First Sensor – Dirk Rothweiler (CEO); Mathias Gollwitzer (CFO).

Advisers
Company – Goldman Sachs (corporate finance).

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