ESCO Technologies Inc: ESCO Completes Divestiture of Aclara
ST. LOUIS, March 28, 2014 - ESCO Technologies Inc. (NYSE: ESE) today announced
that it has completed the previously announced sale of Aclara Technologies LLC
to an affiliate of Sun Capital Partners, Inc. The divestiture generated
approximately $150 million of gross cash proceeds that will be applied to pay
down a significant portion of the Company's outstanding debt under its
revolving credit facility. The agreement is also subject to normal
post-closing working capital adjustments.
The Company has over $600 million of available liquidity under its existing
credit facility to support its strategy of profitable organic growth,
accretive acquisitions around its existing core businesses, and opportunistic
repurchases of outstanding shares.
Vic Richey, ESCO's Chairman and Chief Executive Officer, commented,
"Completing the sale of Aclara creates an exciting opportunity for ESCO and
our shareholders both today and for the future. With our balance sheet
essentially debt-free, our options to grow the business around our core are
quite extensive. The Company is now a more strategically focused, higher
margin business expected to have a much steadier and more predictable growth
profile. I am excited about our future, and convinced these actions further
enhance our ability to increase shareholder value."
Statements in this press release regarding the growth of the Company 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 the items described in Item 1A, Risk
Factors, of the Company's annual report on Form 10-K for the year ended
September 30, 2013 and in the Company's Form 10-Q for the three months ended
December 31, 2013.
ESCO, headquartered in St. Louis, provides engineered filtration products to
the aviation, space and process markets worldwide and is the industry leader
in RF shielding and EMC test products. In addition, the Company provides
diagnostic instruments, services, and the world's premier library of
statistically significant apparatus test results for the benefit of energy
generation, transmission, delivery companies and industrial power users
worldwide. More 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
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: ESCO Technologies Inc via Globenewswire
Press spacebar to pause and continue. Press esc to stop.