TE Connectivity (Tyco) acquires Deutsch

Here is some connector news that has been flying under the radar, but may have significant implications with regards to harsh environment connectors in the future.  TE Connectivity has acquired Deutsch from Wendel.  I am not a financial analyst by any means, but I expect the uncertainty in the European markets made this an attractive acquisition.  It is important to note here that the acquisition includes Ladd, which is the single source distribution partner for Deutsch.

http://investors.tycoelectronics.com/phoenix.zhtml?c=209396&p=irol-newsArticle&ID=1634437&highlight=

http://www.ft.com/cms/s/0/2105afbc-1b4c-11e1-8b11-00144feabdc0.html#axzz1fl52pmdV

If you are unfamiliar with Deutsch, they hold a large marketshare when it comes to connection systems on heavy equipment, from construction (backhoes, dozers, graders, etc.) to more industrial (man lifts, telehandlers, truck bodies, etc.).  TE Connectivity has had some success breaking into that market with their AmpSeal line, but Deutsch is still the king.

This will be interesting to see how this all plays out.

  • What will happen with Amphenol and their recent introduction of the Amphenol Sine AT Series (which is a direct replacement to Deutsch DT Series)?
  • Will there still only be one place to purchase Deutsch components?
  • Will TE Connectivity use their leverage to increase pricing, or will they use their breadth to reduce pricing?
  • Will there be consolidation and how will that affect Quality and Reliability?

All questions that you can be sure we are asking of our contacts within the industry.

By the way, has TE Connectivity gained a firm footing in anyone’s lexicon yet?  It still feels awkward to say it, and every time I typed it in this post, I typed Tyco, backspace, backspace, backspace, backspace, TE Connectivity…