TE Connectivity (formerly Tyco Electronics) is more passive than aggressive when it comes to electronics. Formerly part of Tyco International, TE Connectivity is one of the world's largest suppliers of passive electronics. Its components are used in aerospace, automotive, datacomm, consumer electronics, energy, lighting products, and medical applications, as well as public safety, military, and telecom products. The company operates about 100 manufacturing sites around the world and sells about 450,000 types of components directly and through distributors to customers in more than 150 countries. While headquartered in Switzerland for tax purposes, its corporate office is in Pennsylvania.
TE Connectivity functions through four business segments: Electronic Components, Network Solutions, Specialty Products, and Subsea Communications.
Net sales rose more than 17% in 2010 over 2009 thanks mainly to strong sales of products for the automotive and appliance end markets. TE Connectivity's sales strategy includes focusing on strategic accounts and improving customer-facing Web operations; increasing the percentage of new products in annual net sales, which stood at 26% in 2010; and developing more business in sectors where the company has low market share, including alternative energy, enterprise networks, and defense, as well as such emerging markets as China, Brazil, and India.
Mergers and Acquisitions
In mid-2014 the company announced a major acquisition when it proposed to buy Measurement Specialties for $1.7 billion. Measurement Specialties makes sensors of all kinds -- for pressure, vibration, force, temperature, humidity, ultrasonics, position and fluid. The deal would include more than a dozen manufacturing plants situated around the world and would established TE Connectivity as a leader in the high-growth sensor market.
In 2014 it paid some $490 million for the SEACON Group, a provider of underwater connector technology and systems, which expands its expertise in connectivity for harsh environments.
The company improved its product line for customers in the aerospace and defense, rail, and industrial equipment industries, with the 2012 acquisition of Deutsch Group SAS for €1.55 billion (about $2.1 billion). Deutsch makes connectors for use in harsh environment applications, specializing in areas such as hermetics, filtering, high-speed precision machining, and composites.
TE Connectivity paid $1.25 billion to acquire ADC, a provider of broadband connectivity products for the telecommunications services and enterprise carrier markets, in 2010 to expand its selection of wireless communications products. The deal also boosted TE Connectivity's overseas presence in the Americas and China; it had traditionally been stronger in Europe and India.
Since the spinoff from Tyco in 2007, the company has given itself a facelift; the elective nips and tucks included workforce reductions (17%) and the removal of some product lines. Late in 2009 the company sold its Dulmison line (connectors and fittings) to Preformed Line Products Company. The deal included Dulmison's competencies in designing, manufacturing, and marketing for vibration control products and pole line hardware. That same year the company also sold its Battery Systems business for $14 million, as well as its Wireless Systems business to Harris for about $675 million in cash. The transactions allowed TE Connectivity to focus on its core connectivity business.
The company announced further non-core business divestments in 2012, selling its Touch Solutions business to The Gores Group for $380 million and its TE Professional Services (TPS) business to BlueStream Professional Services for $23.5 million.
TE Connectivity undertook its solo role on the world's stage of passive electronics in 2007. Tyco International had rewritten its corporate script, and moved to split off Tyco Electronics and Covidien (formerly Tyco Healthcare Group) from its security and engineered products operation; three stand-alone public companies resulted. The company changed its name to TE Connectivity in 2011 to better reflect its operations after the ADC acquisition.