Eastern Strengthens Its Big 3 Precision Blow Mold Tooling Business with the Acquisition of Hallink RSB Inc.

Rhea-AI Summary

The Eastern Company (NASDAQ:EML) has announced the acquisition of specific assets from Hallink RSB Inc., a supplier of blow molds and change parts targeting the food, beverage, healthcare, and chemical industries. The transaction aims to integrate Hallink into the Big 3 Precision Products subsidiary, bolstering its service capabilities and expanding its geographic reach. Company executives foresee significant synergies and incremental value creation through enhanced product offerings and customer relationships as a result of this acquisition.

Positive

• Acquisition of Hallink enhances product offerings and service capabilities.
• Expected synergies between Big 3 Precision and Hallink.
• Strengthens market position in the blow molding sector.

Negative

• None.

NAUGATUCK, CT / ACCESSWIRE / August 11, 2020 / The Eastern Company (NASDAQ:EML) (the "Company" or "Eastern"), a diversified provider of niche industrial products and services, today announced that it has acquired specific assets of Hallink RSB Inc. ("Hallink"). The Company did not disclose the terms of the transaction.

Hallink is a leading supplier of blow molds and change parts to the food, beverage, healthcare and chemical industry. Hallink specializes in the design, development and manufacture of 2-step stretch blow molds, and related components for the stretch blow molding industry offering integrated turnkey solutions to its customers worldwide.

Hallink will be part of Eastern's Big 3 Precision Product's subsidiary. According to Mr. Todd Riley, Big 3 Precision's President, "The acquisition of Hallink is an important step in our commitment to expand the product offering, service capability and geographic reach of our Big 3 Precision Mold business." Mr. Riley continues that "we believe that Hallink's complimentary products and capabilities offer significant potential synergies and can create material incremental value through shared know-how and strong relationships across an even broader customer base."

Mr. Mark Hallink, Founder and President of Hallink added that, "we are excited about this transaction and believe that it will be highly beneficial to all our customers. We believe that, together, Big 3 Precision Mold and Hallink can bring additional capabilities to our customers and take our relationships to a new level."

Mr. August Vlak, the Company's President and CEO, said that "this transaction further strengthens and builds scale in Big 3 Precision Mold and reflects our commitment to continue to grow the business organically through targeted growth investments and through strategic acquisitions. Moreover, we are excited to welcome aboard Hallink's highly committed and talented workforce."

About Eastern

The Eastern Company manages industrial businesses that design, manufacture and sell unique engineered solutions to niche markets, focusing on industries that offer long-term macroeconomic growth opportunities. The Company operates across three reporting segments - Industrial Hardware, Security Products and Metal Products - from locations in the U.S., Canada, Mexico, U.K., Taiwan and China. More information on the Company can be found at www.easterncompany.com.

Safe Harbor for Forward-Looking Statements

Statements in this document about the Company's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes", "plans", "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including those set forth in the Company's reports and filings with the U.S. Securities and Exchange Commission. The Company is not obligated to update or revise any forward-looking statements as a result of developments occurring after the date of this document.

Investor Relations Contacts

The Eastern Company

August Vlak or John L. Sullivan III, 203-729-2255

SOURCE: The Eastern Company

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FAQ

What are the details of Eastern Company's acquisition of Hallink?

Eastern Company acquired specific assets of Hallink RSB Inc., a supplier of blow molds. The terms of the transaction were not disclosed.

How will the acquisition of Hallink impact Eastern Company's stock EML?

The acquisition is expected to create synergies and enhance product offerings, which may positively influence EML's stock performance.

What industries does Hallink supply products to?

Hallink supplies blow molds and change parts primarily to the food, beverage, healthcare, and chemical industries.

When was the acquisition of Hallink announced by Eastern Company?

The acquisition was announced on August 11, 2020.

What is the strategic importance of Hallink to Eastern Company?

Hallink will expand Big 3 Precision's service capability and geographic reach, creating additional value through enhanced collaboration.