Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a
leading 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, announced that it has acquired
privately-held Becnel Rental Tools LLC (Becnel), effective April
15, 2024. The $50 million purchase price was paid in combination of
$32.5 million in Company stock and $17.5 million in cash and is
subject to certain customary holdback provisions.
Founded in 2012, Becnel is an ISO 9001:2015 certified provider
of rental tools and services primarily utilized in the
decommissioning and maintenance of oil wells. The company’s
management team has vast experience operating and servicing
customers in these highly regulated end markets. The existing staff
and leadership team, led by current Becnel President Jason Becnel,
will remain in place to strategically drive the business and
service customers’ needs.
“Becnel is a well-run business, with great leadership and
significant industry experience in the rental of equipment used in
the highly regulated end markets associated with decommissioning
and maintenance of oil wells. They have demonstrated the ability to
scale in support of the growing number of wells that are in need of
decommissioning, and we believe that the resources and expertise
that Transcat brings to the table, will position Becnel well for
continued growth to take advantage of the tens of thousands of
wells targeted to be decommissioned in the next 10 to 15 years and
beyond, as well as future service expansion opportunities,”
according to Lee Rudow, President and Chief Executive Officer.
“Becnel operates in a niche part of the oil and gas industry, and
we believe the business is largely isolated from the inherent
market volatility. Their customer relationships are very strong and
as a result, we believe that the highly regulated markets that
Becnel serves, will provide significant opportunity for
cross-selling of Transcat’s calibration services, as well as our
core distribution products.”
Mr. Rudow added, “We continue to find the rental business very
attractive and view Becnel as a great addition to our rental
portfolio. In addition, within their current business model, Becnel
has an attractive service revenue component that works hand in hand
with their equipment rentals. Similar to the rest of our rental
portfolio, this business performs very well financially and will
provide expansion to our overall Gross Margins and EBITDA Margins
for both our Service and Distribution segments. The total acquired
EBITDA for this deal is approximately $5.8 million.”
“This rental business is different than our existing rental
businesses in terms of the nature of the equipment being rented but
is very consistent in the opportunities it provides to the overall
Transcat business, which are expansion of our offerings,
profit/margin enhancement, cross-selling opportunities, and lead
generation for our Services business. As a result, we see Becnel as
a great strategic fit for Transcat.”
ABOUT TRANSCAT
Transcat, Inc. is a leading provider of accredited calibration,
reliability, maintenance optimization, quality and compliance,
validation, Computerized Maintenance Management System (CMMS), and
pipette services. The Company is focused on providing best-in-class
services and products to highly regulated industries, particularly
the Life Science industry, which includes pharmaceutical,
biotechnology, medical device, and other FDA-regulated businesses,
as well as aerospace and defense, and energy and utilities.
Transcat provides periodic on-site services, mobile calibration
services, pickup and delivery, in-house services at its 27
Calibration Service Centers strategically located across the United
States, Puerto Rico, Canada, and Ireland. In addition, Transcat
operates calibration labs in 21 imbedded customer-site locations.
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 operates as a leading value-added distributor that
markets, sells and rents new and used national and proprietary
brand instruments to customers primarily in North America. The
Company believes its combined Service and Distribution segment
offerings, experience, technical expertise, and integrity create a
unique and compelling value proposition for its customers.
Transcat’s strategy is to leverage its strong brand and unique
value proposition that includes its comprehensive instrument
service capabilities, Cost, Control and Optimizations services, and
leading distribution platform to drive organic sales growth. The
Company will also look 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 at: Transcat.com.
Safe Harbor Statement
This news 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.
Forward-looking statements are identified by words such as
“expects,” “estimates,” “projects,” “anticipates,” “believes,”
“could,” “plans,” “aims” 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, the Company’s response to the coronavirus
(COVID-19) pandemic, the commercialization of software projects,
sales operations, capital expenditures, cash flows, operating
income, growth strategy, segment growth, potential acquisitions,
integration of acquired businesses, market position, customer
preferences, outlook 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 include those more fully described in Transcat’s
Annual Report 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, which speak
only as of the date they are made. Except as required by law, the
Company disclaims any obligation to update, correct or publicly
announce any revisions to any of the forward-looking statements
contained in this news release, whether as the result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240415324301/en/
For more information, contact: Linda Reynolds
Executive Assistant 35 Vantage Point Drive Rochester, NY 14624
Phone: 585.866.1969 Email: linda.reynolds@transcat.com
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