The deal will add Hamlin's portfolio of sensors for the automotive industry to Littelfuse's holdings, which Littelfuse CEO Gordon Hunter called "a major step forward in our strategy to build a global, automotive sensor platform." Hamlin also makes sensors for the electronics and industrial markets.
Hamlin is headquartered in Wisconsin with manufacturing, engineering, and sales offices in the U.S., Mexico, Europe, and Asia. Hamlin had sales of approximately $76 million in 2012.
Littelfuse expects the acquisition to help it achieve double-digit sales growth going forward, and to add $0.35 per share in profit in 2014.
The $145 million Littelfuse is paying for Hamlin works out to a 1.9-times-sales valuation on the deal, a slight discount to the 2.2 price-to-sales valuation Littelfuse's own shares currently command.
The transaction, which is subject to antitrust oversight and other closing conditions, is expected to close by the end of May.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
5 Supernova Stocks That Have Flown Under the Radar: Littelfuse
Among the 210 stocks David Gardner has on his active recommendation list, not all get the recognition they deserve in the markets.
Littelfuse Sees Growth Slowdown Ahead
A strong third quarter was overshadowed by a forecast of sluggish fourth-quarter growth.
Why Shares of Littelfuse Slumped Today
With the stock up so much this year, an earnings miss coupled with weak guidance was enough for a double-digit plunge.