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CORRECTED-UPDATE 1-Sensata Technologies to buy Schrader in $1 bln deal

(Corrects paragraph 5 to say deal will reduce adjusted earnings, not add to them)

Aug 18 (Reuters) - Sensors and electrical controls maker Sensata Technologies Holding NV said it would buy Schrader group of companies for an enterprise value of $1 billion to benefit from a growing market for tire pressure monitoring sensors (TPMS).

Schrader International, held by private equity firm Madison Dearborn Partners LLC, is the global leader in TPMS, Sensata said on Monday.

The device that alerts driver when a tire is under-inflated - now standard for all cars in North America - is being increasingly used in Europe and Asia.

Denver-headquartered Schrader sells TPMS and other sensors in the United States, the United Kingdom, Germany, China, Japan and South Korea. It employs 2,500 people and is expected to generate $550 million in revenue this year, Sensata said.

Netherlands-based Sensata said it expects the deal to reduce adjusted earnings by 13-16 cents per share in 2014.

Barclays Bank Plc and Morgan Stanley Senior Funding Inc have committed to finance the deal, expected to close in the fourth quarter.

Centerview Partners advised Sensata, while Barclays, Citigroup and Guggenheim Securities advised Schrader.

(Reporting by Mridhula Raghavan in Bangalore; Editing by Joyjeet Das)