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Transcat expands in New England with record $84M acquisition
Transcat expands in New England with record $84M acquisition
Listen to this articleTranscat Inc. has acquired Massachusetts-based Essco Calibration Laboratory for $84 million, which is the largest deal in the Rochester-based firm’s history.
The transaction, which was paid in cash and is subject to certain customary adjustments and holdback provisions, was supported by Transcat’s recently announced new $150 million syndicated credit facility jointly led by M&T Bank and Wells Fargo Bank.
Essco, a privately held calibration laboratory, is in the Boston metro area, with a customer base extending throughout the U.S., and is the New England market leader in calibration services. The firm employs 113 people.
Operating for over 50 years, the team at Essco has grown the business to over $22 million in annual revenue, providing both in-house and onsite services to a wide range of customers in the medical, life science, aerospace & defense and industrial sectors.
Lee Rudow, Transcat president and CEO, said the acquisition complements the firm’s calibration service portfolio and creates a dominant presence for Transcat in the New England market.
“With their reputation for high quality and a broad scope of capabilities, including specialized, high-end electrical measurement in support of aerospace & defense and other regulated industries, Essco has been a strategic target within the calibration industry for many years,” he said.
Rudow noted sales and cost synergy opportunities, adding the combined operation will immediately become Transcat’s highest revenue producing location.
The acquisition is the second in an eight-month period for Transcat, which acquired Minnesota-based Martin Calibration for $79 million in December.
Rudow said the two acquisitions will contribute approximately $50 million in annualized revenue, focused primarily on core calibration services.
Transcat is a provider of accredited calibration services, cost control and optimization services, and distribution and rental of value-added professional grade handheld test, measurement and control instrumentation.
The business has more than two dozen calibration lab locations throughout the United States, as well as facilities in Canada and Cork, Ireland.
In Rochester, Transcat employs some 200 workers and has more than 1,200 employees companywide.
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