ROCHESTER, N.Y., Dec. 30, 2015 (GLOBE NEWSWIRE) -- Transcat, Inc. (NASDAQ:TRNS) (“Transcat” or the “Company”), a leading provider of accredited calibration and compliance services and distributor of professional grade handheld test, measurement and control instrumentation, announced today that it has acquired Spectrum Technologies, Inc. ("Spectrum") for $11.25 million in cash. The transaction will be effective December 31, 2015. Additional purchase consideration of $0.5 million may be paid by Transcat after 12 months if Spectrum achieves certain profit targets.
Headquartered in Paxinos, Pennsylvania, Spectrum offers commercial calibrations, test equipment repair services and product sales throughout North America and generates annualized revenue of approximately $5.8 million. Spectrum was founded in 1986 and acquired in 1999 by its Chief Executive Officer, Brian Hubler, and Ken Horvath, Vice President of Operations, both of whom will remain with Transcat to continue leading the Spectrum operations and its 40 employees.
Lee D. Rudow, President and Chief Executive Officer of Transcat, commented, "The acquisition of Spectrum is an excellent strategic fit for Transcat and aligns well with our current growth strategy. The acquisition also demonstrates our commitment to allocating capital to grow our service platform in the highly regulated life science and biomedical industries. Spectrum delivers incremental revenue, strong operating income margins in the 20% range and an expanded geographic footprint. In addition, we are excited to combine Spectrum’s expertise and key talent to strengthen our service offering throughout North America.”
Brian Hubler, Chief Executive Officer of Spectrum Technologies, added, "We believe that by joining Transcat, we can deliver greater value to our customers while being in a better position to expand and develop new customer relationships. Transcat brings a broader portfolio of products and services to our customers. As a much larger organization and a highly respected industry leader, Transcat also provides our employees with greater opportunities for career advancement and development. We expect this to be a very successful partnership.”
Mr. Rudow concluded, “Brian and Ken have built a terrific organization, and we are delighted to welcome them and their team to Transcat.”
Transcat, Inc. is a leading provider of accredited calibration and compliance services, including analytical instrument qualifications, equipment and process validation. The Company is focused on providing best-in-class calibration analytics to highly regulated industries, including life science, aerospace, pharmaceuticals, medical device manufacturing and biotechnology. Transcat performs over 250,000 specialized technical services annually through a variety of delivery options, including permanent and periodic on-site services, mobile calibration services and in-house services (often accompanied by pick-up and delivery). The in-house services are offered through 20 Calibration Service Centers strategically located across the United States, Puerto Rico and Canada. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be the best in the industry. Transcat also answers the call with cGMP and GLP compliant services.
In addition, Transcat operates as a leading distributor of professional grade handheld test, measurement and control instrumentation, marketing more than 100,000 premier and proprietary brand instruments to approximately 22,000 customers.
Transcat’s growth strategy is to leverage its service capabilities, strong brand and leading distribution platform to drive organic sales growth and to expand its addressable calibration market through acquisitions and capability investments to further realize the inherent leverage of its business model.
More information about Transcat can be found on its website at: Transcat.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and thus are subject to risks, uncertainties and assumptions that often are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “could,” and other similar words. All statements addressing operating performance, events, or developments that Transcat, Inc. expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, sales operations, capital expenditures, cash flows, operating income, growth strategy, potential acquisitions, market position, customer preferences and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Transcat’s Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.
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