ESCO Announces Acquisition of Global Utility Supplier
ESCO Technologies Inc. (NYSE: ESE) has announced its acquisition of I.S.A Altanova Group S.R.L., a leading European provider of condition assessment technologies for electrical equipment. This acquisition, valued at approximately $30 million, is anticipated to enhance ESCO's Utility Solutions Group by filling product gaps and expanding its global reach in power generation and distribution markets. The transaction is subject to Italian regulatory approval and is expected to close within 45 days.
- Acquisition valued at approximately $30 million enhances ESCO's Utility Solutions Group.
- Expands global reach and fills product gaps in power generation and distribution markets.
- Altanova has a strong market presence in over 100 countries, boosting ESCO's international platform.
- Transaction subject to regulatory approval, which could delay the acquisition.
- Integration challenges may arise post-acquisition, affecting projected synergies.
Altanova Group is a European-Based, Leading Supplier of Advanced Technologies for Electrical Equipment Condition Testing and Monitoring
St. Louis, May 20, 2021 (GLOBE NEWSWIRE) -- ESCO Technologies Inc. (NYSE: ESE) today announced that it has entered into an agreement to acquire I.S.A Altanova Group S.R.L. (Altanova), a well-established, leading supplier in the field of advanced condition assessment technologies centered around partial discharge (PD) measurement and analysis, as well as test instruments for electrical apparatus (www.altanova-group.com). Altanova offers a wide range of diagnostic products, monitoring systems, and services for electrical assets related to power generation, transmission and distribution networks, renewable energy and storage, and process industries, worldwide.
The transaction is subject to Italian regulatory approval and is expected to close in the next 45 days.
Altanova has its roots in three strong, long-experienced companies: ISA, TECHIMP and IntelliSAW which collectively provide synergies to the benefit of its customers in terms of giving access to new solutions and emerging technologies. The group leverages a worldwide geographical presence through its brands, thanks to a number of offices and subsidiaries around the world.
Headquartered in Taino, Italy, Altanova provides products and services in more than 100 countries, and its strong market share in Europe and Asia creates a significant international platform for ESCO’s Utility Solutions Group (USG) and fills important product gaps and geographies currently not served by USG’s existing products and solutions. This acquisition positions ESCO to capture additional growth on a global scale as power infrastructure around the world continues to be developed and upgraded.
Altanova, which will become part of the USG operating segment, had 2020 calendar year sales of approximately
Mr. Gino Amadi, founder and a shareholder of Altanova, currently serves as Chief Executive Officer of Altanova and has agreed to remain with the company subsequent to closing.
Vic Richey, ESCO’s Chairman and Chief Executive Officer, commented, “I’m excited to welcome the outstanding and dedicated employees of Altanova to our team, and I’m pleased that Gino has agreed to remain with the company, post-closing. I look forward to working with Gino as he has successfully grown and managed this outstanding company for many years and I’m certain his future contributions will be meaningful.
“We are continually looking to expand our product offerings and gain more content across our USG platforms. By adding the proven capabilities of Altanova to our existing portfolio, we have expanded our global reach and created an additional avenue for meaningful growth across our existing customer base.
Mr. Amadi commented, “I have known the management teams at Doble and ESCO for many years and have tremendous respect for Doble. I believe that combining the Doble and Altanova brands and expanding our global presence, coupled with the additional capital resources ESCO can provide to support our mission, will create a formidable presence in our end markets for years to come.
“My family has an 80 year history since founding ISA in 1940, and I’m proud to see our legacy continue as we become part of the ESCO family. I am certain that we will complement ESCO’s growth strategy surrounding its investments in the utility markets and will add to their solid capabilities and strong market presence by creating additional opportunities to further strengthen our joint customer relationships.”
Bryan Sayler, President of Doble and Group Executive of the USG segment, commented, “Combining Altanova with ESCO is a natural fit, given our shared philosophies and values. Both companies possess a skilled and dedicated workforce with a high degree of specialization, a history of investing ahead of customer demand, and a relentless approach to innovation which drives customer loyalty. Together we will deepen those relationships and create new opportunities to secure recurring revenue and expand our operations. I look forward to working with Gino to further expand his family’s legacy and to create shareholder value for ESCO’s stakeholders.”
Forward-Looking Statement
Statements in this release regarding future growth, growth strategy, expectations, beliefs and benefits resulting from the acquisition, and other statements which are not strictly historical are “forward-looking” statements within the meaning of the safe harbor provisions of the Federal Securities Laws. Investors are cautioned that such statements are only predictions and speak only as of the date of this release, and the Company undertakes no duty to update them except as may be required by applicable laws or regulations. The Company’s actual results in the future may differ materially from those projected in the forward-looking statements. Factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, include: customer demand, technical issues, success of integration efforts, and the other factors described in Item 1A, Risk Factors, of the Company’s annual report on Form 10-K for the year ended September 30, 2020.
ESCO, headquartered in St. Louis, Missouri: Manufactures highly-engineered filtration and fluid control products for the aviation, Navy, space and process markets worldwide, as well as composite-based products and solutions for Navy, defense and industrial customers; is the industry leader in RF shielding and EMC test products; and provides diagnostic instruments, software and services for the benefit of industrial power users and the electric utility and renewable energy industries. Further information regarding ESCO and its subsidiaries is available on the Company’s website at www.escotechnologies.com.
SOURCE ESCO Technologies Inc.
Kate Lowrey, Director of Investor Relations, (314) 213-7277
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