Company Transcat gains Essco Calibration for a sum of $84 million in an acquisition deal.
In a significant move, Transcat, Inc. (TRNS) has announced the acquisition of Essco Calibration Laboratory for $84 million in cash. The deal, finalized on August 5, 2025, marks Transcat's largest acquisition to date and is backed by a $150 million syndicated credit facility co-led by M&T Bank and Wells Fargo Bank.
Essco, an ISO-17025 accredited calibration lab based in the Boston metro area, generates over $22 million in annual revenue with EBITDA margins above 25%. The company serves diverse sectors such as Medical, Life Sciences, Aerospace & Defense, and Industrial markets. With this acquisition, Transcat aims to strengthen its market position in a region rich with highly regulated industries and expand its service capabilities and customer base.
Transcat's CEO, Lee Rudow, stated that Essco was a long-time strategic target and aligns well with Transcat's core calibration portfolio. He also mentioned that the acquisition follows the December acquisition of Martin Calibration, adding around $50 million in annualized revenue. The deal includes 113 employees from Essco.
The synergies expected from the acquisition include both sales growth and cost efficiencies, notably through the consolidation of Transcat's existing Boston operations. This consolidation will make the merged unit Transcat’s highest-revenue location. The acquisition is expected to generate additional sales and cost synergies, positioning Transcat as a dominant player in the New England calibration market.
Mike Walsh, Essco's owner, expressed confidence in the deal, citing Transcat's dedication to quality, employee development, and technical excellence as key factors in choosing them as a successor. He also praised initiatives like Transcat University and highlighted the cultural fit between the two organizations.
After hours trading on the NasdaqGM, TRNS is currently at $74.17, down 1.94%. On the day of the announcement, TRNS closed at $75.64, up 1.12%.
For more information about this acquisition, please tune into Transcat's August 7, 2025 quarterly earnings call. For comments and feedback, contact editorial@our website.
[1] Transcat Press Release, August 5, 2025. [2] Essco Calibration Laboratory Website. [3] Transcat, Inc. Investor Relations. [4] M&T Bank Press Release, August 5, 2025.
- With the acquisition of Essco Calibration Laboratory, Transcat aims to leverage technology and expand its service capabilities, targeting highly regulated industries in the Boston metro area.
- The consolidation of Transcat's existing Boston operations, following the Essco acquisition, is expected to augment Transcat's market position in the New England calibration market, generating additional sales and cost synergies.
