Summary
Amphenol Corporation (APH) has announced a significant development regarding its previously announced acquisition of MTS Systems Corporation. On January 19, 2021, Amphenol disclosed the execution of a share purchase agreement with Illinois Tool Works Inc. (ITW). This agreement stipulates that ITW will acquire the Test & Simulation business of MTS Systems Corporation, but only after Amphenol's own acquisition of MTS has been completed. This move is subject to certain conditions, including antitrust clearance under the Hart-Scott Rodino Act. This disclosure indicates a strategic divestiture related to the MTS acquisition. While Amphenol is acquiring MTS, it is simultaneously planning to sell a portion of MTS's business to ITW. Investors should closely monitor the progress of both Amphenol's acquisition of MTS and the subsequent sale of the Test & Simulation business to ITW, as well as the antitrust review process, as these actions will impact the final structure and value of the MTS acquisition for Amphenol.
Key Highlights
- 1Amphenol Corporation is selling the Test & Simulation business of MTS Systems Corporation to Illinois Tool Works Inc. (ITW).
- 2This sale is contingent upon the successful completion of Amphenol's own acquisition of MTS Systems Corporation.
- 3The transaction is subject to regulatory approval, specifically clearance under the Hart-Scott Rodino Antitrust Improvements Act.
- 4This is a Regulation FD disclosure, meaning the information is being furnished and not formally filed.
- 5The press release announcing this agreement is attached as Exhibit 99.1 to the 8-K filing.
- 6The CFO, Craig A. Lampo, signed the filing, indicating the transaction's financial significance.