ESCO Announces Divestiture of VACCO Industries
ESCO Technologies (NYSE: ESE) has announced the sale of its VACCO Industries subsidiary to RBC Bearings (NYSE: RBC) for $310 million in gross cash proceeds. The transaction, expected to close pending regulatory approvals, will result in a significant book gain. ESCO plans to use the net proceeds to reduce debt from its Maritime acquisition.
This divestiture follows a strategic review announced last August and aligns with ESCO's strategy to focus on core high-growth markets. VACCO, which has been part of ESCO since 1990, is a provider of highly-technical mission-critical solutions. The sale represents a strategic move to streamline ESCO's portfolio while ensuring VACCO's continued growth under RBC Bearings' ownership.
ESCO Technologies (NYSE: ESE) ha annunciato la vendita della sua controllata VACCO Industries a RBC Bearings (NYSE: RBC) per un importo lordo in contanti di 310 milioni di dollari. L'operazione, il cui completamento è previsto dopo l'approvazione delle autorità regolatorie, genererà un significativo guadagno contabile. ESCO intende utilizzare il ricavato netto per ridurre il debito derivante dall'acquisizione nel settore marittimo.
Questa cessione segue una revisione strategica annunciata lo scorso agosto e si allinea alla strategia di ESCO di concentrarsi su mercati core ad alta crescita. VACCO, parte di ESCO dal 1990, è un fornitore di soluzioni altamente tecniche e mission-critical. La vendita rappresenta una mossa strategica per snellire il portafoglio di ESCO, garantendo al contempo la crescita continua di VACCO sotto la proprietà di RBC Bearings.
ESCO Technologies (NYSE: ESE) ha anunciado la venta de su subsidiaria VACCO Industries a RBC Bearings (NYSE: RBC) por 310 millones de dólares en ingresos brutos en efectivo. La transacción, que se espera cerrar tras las aprobaciones regulatorias, generará una ganancia contable significativa. ESCO planea usar los ingresos netos para reducir la deuda derivada de su adquisición en el sector marítimo.
Esta desinversión sigue a una revisión estratégica anunciada en agosto pasado y está alineada con la estrategia de ESCO de enfocarse en mercados clave de alto crecimiento. VACCO, que forma parte de ESCO desde 1990, es un proveedor de soluciones técnicas críticas para misiones. La venta representa un movimiento estratégico para simplificar el portafolio de ESCO, asegurando al mismo tiempo el crecimiento continuo de VACCO bajo la propiedad de RBC Bearings.
ESCO Technologies (NYSE: ESE)는 자회사 VACCO Industries를 RBC Bearings (NYSE: RBC)에 총 현금 3억 1천만 달러에 매각한다고 발표했습니다. 규제 승인 대기 중인 이 거래는 상당한 장부 이익을 창출할 것으로 예상됩니다. ESCO는 순수익을 해양 부문 인수로 인한 부채 상환에 사용할 계획입니다.
이번 매각은 지난해 8월 발표한 전략 검토에 따른 것으로, ESCO가 핵심 고성장 시장에 집중하는 전략과 일치합니다. 1990년부터 ESCO의 일부였던 VACCO는 고도의 기술적 임무 핵심 솔루션을 제공하는 업체입니다. 이번 매각은 ESCO의 포트폴리오를 간소화하면서 RBC Bearings 소유 하에서 VACCO의 지속적인 성장을 보장하기 위한 전략적 조치입니다.
ESCO Technologies (NYSE: ESE) a annoncé la vente de sa filiale VACCO Industries à RBC Bearings (NYSE: RBC) pour un produit brut en espèces de 310 millions de dollars. La transaction, dont la clôture est attendue sous réserve des approbations réglementaires, entraînera un gain comptable significatif. ESCO prévoit d'utiliser le produit net pour réduire la dette liée à son acquisition dans le secteur maritime.
Cette cession fait suite à une revue stratégique annoncée en août dernier et s'aligne sur la stratégie d'ESCO visant à se concentrer sur des marchés clés à forte croissance. VACCO, qui fait partie d'ESCO depuis 1990, est un fournisseur de solutions techniques critiques pour des missions essentielles. La vente représente une démarche stratégique pour simplifier le portefeuille d'ESCO tout en assurant la croissance continue de VACCO sous la propriété de RBC Bearings.
ESCO Technologies (NYSE: ESE) hat den Verkauf seiner Tochtergesellschaft VACCO Industries an RBC Bearings (NYSE: RBC) für 310 Millionen US-Dollar Brutto-Cash-Erlöse bekanntgegeben. Die Transaktion, deren Abschluss noch von behördlichen Genehmigungen abhängt, wird einen erheblichen Buchgewinn zur Folge haben. ESCO plant, die Nettoerlöse zur Schuldenreduzierung aus der Übernahme im maritimen Bereich zu verwenden.
Dieser Verkauf folgt auf eine im August angekündigte strategische Überprüfung und entspricht der Strategie von ESCO, sich auf Kernmärkte mit hohem Wachstum zu konzentrieren. VACCO, das seit 1990 zu ESCO gehört, ist ein Anbieter hoch technischer, missionskritischer Lösungen. Der Verkauf stellt einen strategischen Schritt dar, um das Portfolio von ESCO zu straffen und gleichzeitig das weitere Wachstum von VACCO unter der Eigentümerschaft von RBC Bearings zu sichern.
- Substantial cash proceeds of $310 million from the sale
- Significant book gain expected from the transaction
- Strategic debt reduction opportunity for Maritime acquisition
- Alignment with long-term strategy to focus on core high-growth markets
- Loss of VACCO's revenue stream and technical capabilities
- Reduction in business diversification
Insights
ESCO's $310M divestiture of VACCO to pay down Maritime acquisition debt improves financial flexibility while focusing on high-growth markets.
ESCO's divestiture of VACCO Industries to RBC Bearings for
The financial implications are significant. The gross proceeds of $310 million will primarily be directed toward reducing debt incurred from the Maritime acquisition, strengthening ESCO's balance sheet. The company explicitly states a "sizable book gain" is expected, indicating the sale price substantially exceeds VACCO's carrying value on ESCO's books.
This divestiture carries strategic importance as VACCO has been part of ESCO since the company's formation in 1990. While VACCO provides "highly-technical mission-critical solutions," management has determined its business profile no longer aligns with ESCO's strategic direction toward high-growth markets.
The transaction reflects disciplined portfolio management as ESCO sharpens its market focus. By reducing acquisition-related debt, the company improves its financial flexibility for future strategic investments in its remaining business segments: filtration and fluid control, advanced composites, signature and power management solutions, RF test and measurement products, and diagnostic instruments for industrial and utility customers.
This calculated exit from a long-held business unit demonstrates management's commitment to strategic evolution rather than maintaining historical assets that don't support the company's growth trajectory.
St. Louis, May 20, 2025 (GLOBE NEWSWIRE) -- ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today announced that it has entered into a definitive agreement to sell VACCO Industries (VACCO) to RBC Bearings Incorporated (NYSE: RBC), an international manufacturer and marketer of highly engineered precision bearings and products, headquartered in Oxford, Connecticut.
The Company expects to finalize the transaction upon receipt of certain customary regulatory approvals with expected gross cash proceeds of
Last August, the Company announced a strategic review of the VACCO business and the resulting divestiture supports ESCO’s long-term strategy to focus its portfolio on core high-growth end-markets. VACCO has been a part of ESCO since its formation in 1990 and is a key supplier of highly-technical mission-critical solutions. Bryan Sayler, Chief Executive Officer and President, commented, “We view this transaction as a great outcome for all and are confident that VACCO and its dedicated management team and employees are positioned for a positive future with RBC Bearings.”
ESCO was represented by Philpott, Ball & Werner, LLC as exclusive financial advisor and Bryan Cave Leighton Paisner LLP as legal advisor on this transaction.
ESCO Technologies is a global provider of highly engineered products and solutions serving diverse end-markets. It manufactures filtration and fluid control products, advanced composites, as well as signature and power management solutions for aviation, Navy, space, and industrial customers. ESCO is an industry leader in designing and manufacturing RF test and measurement products and systems; and provides diagnostic instruments, software and services to industrial power users and the electric utility and renewable energy industries. Headquartered in St. Louis, Missouri, ESCO and its subsidiaries have offices and manufacturing facilities worldwide. For more information on ESCO and its subsidiaries, visit ESCO’s website at www.escotechnologies.com.
SOURCE ESCO Technologies Inc.
Kate Lowrey, Vice President of Investor Relations, (314) 213-7277
FAQ
What is the sale price for ESCO's VACCO Industries divestiture?
How will ESCO (ESE) use the proceeds from the VACCO sale?
Who is acquiring VACCO Industries from ESCO Technologies?
How long has VACCO been part of ESCO Technologies?
When will the ESCO-VACCO sale transaction be completed?
