Littelfuse has closed a deal to acquire TE Connectivity’s circuit protection business for $350 million, further expanding into computers, handheld devices, batteries, automobiles, and industrial systems. The buyout falls within TE Connectivity's plans to focus more on sensors and connectors for industrial and medical equipment.
Littelfuse specializes in circuit protection devices and fuses, with a particular focus on automobiles and industrial systems. While TE's core business is connectors and cabling, its circuit protection business was built around polymer-based resettable devices. These are a kind of passive component used to protect electronics from overcurrent faults, which can cause damage and even fires.
“With this acquisition we have strengthened our core circuit protection business,” Gordon Hunter, chief executive of Littelfuse, said in a statement. “We believe our expanded product portfolio and manufacturing capabilities provide excellent growth opportunities for the future.”
For TE Connectivity, the deal was another step toward realigning its business into power electronics that can handle harsh environments, like factory floor equipment and medical devices. Not long after the Littelfuse deal closed, TE completed another deal with Creganna Medical, which makes minimally-invasive healthcare devices, for $895 million.
Littelfuse will continue to produce PolySwitch, 2Pro, PolyZen, and other circuit protection devices that were being made by TE Connectivity. The transaction, which was announced toward the end of last year, also includes manufacturing plants in Japan, Shanghai, and China operated by TE’s circuit protection business.