Item 2.05 Costs Associated with Exit or Disposal Activities.
On June 6, 2023, Sensata Technologies Holding plc (the "Company") made the
decision to exit Spear Power System's ("Spear's") marine energy storage business
(the "Business"). The Company acquired Spear in August 2021 to advance its
electrification portfolio and strategy in new clean energy markets. The decision
to exit the Business will enable Sensata to focus more resources on Spear's
aerospace & defense energy storage business and other promising areas of
Electrification.
Exiting the Business will result in the elimination of approximately 60
positions, primarily in Kansas City, Missouri, and the closure of Spear's
operations in Belgium. In connection with the plan to exit the Business, the
Company is expected to incur total pre-tax charges in the range of approximately
$40 to $50 million in the second quarter, including approximately $14 million of
intangible asset impairments, $13 million of tangible assets impairments, and $2
million of restructuring costs. Closing the Business will lead to approximately
$10 to $12 million in annualized cost savings.
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