Transcat Expands Calibration Service Portfolio with Acquisition of Essco Calibration Laboratory for $84 Million

Transcat, a provider of accredited calibration services, has acquired Essco Calibration Laboratory for $84 million in cash. The acquisition expands Transcat's presence in the New England market and adds specialized electrical measurement capabilities for aerospace and defense industries. Essco has $22 million in annual revenue with EBITDA margins above 25%. The deal follows Transcat's acquisition of Martin Calibration in December and adds approximately $50 million in annualized revenue.

Transcat, Inc. (Nasdaq: TRNS), a leading provider of accredited calibration services, has announced the acquisition of Essco Calibration Laboratory for $84 million in cash. The acquisition expands Transcat's presence in the New England market and adds specialized electrical measurement capabilities for the aerospace and defense industries. Essco has $22 million in annual revenue with EBITDA margins above 25% [1].

The acquisition follows Transcat's December 2024 acquisition of Martin Calibration and adds approximately $50 million in annualized revenue. This strategic move positions Transcat as the dominant player in the New England market, with immediate plans to consolidate operations in the region and leverage automation to reduce outsourced calibrations. The combined operation will become Transcat's highest revenue-producing location in a region rich in highly regulated life science and aerospace & defense industries [1].

Essco, an ISO-17025 Accredited calibration laboratory, has been serving customers throughout the New England area and across the United States for over 50 years. The company provides both in-house and onsite services to a wide range of customers in the medical, life science, aerospace & defense, and industrial sectors. Essco's reputation for high quality and specialized, high-end electrical measurement capabilities makes it a strategic fit for Transcat's portfolio [1].

The acquisition was supported by Transcat's recently announced $150 million syndicated credit facility, jointly led by M&T Bank and Wells Fargo Bank. Transcat's President and Chief Executive Officer, Lee Rudow, noted that the acquisition is a perfect fit into the company's calibration service portfolio and creates a dominant presence in the New England market. Rudow also expressed enthusiasm about the potential sales and cost synergy opportunities, including the consolidation of Boston operations and the development of the workforce through Transcat University [1].

Essco's owner, Mike Walsh, commented that Transcat's long-term commitment to quality and technical capabilities, along with a focus on training and development of employees, make it the optimal partner for Essco. Walsh is impressed with Transcat's transformational approach and looks forward to working closely with the Transcat team to capitalize on the strengths of both organizations [1].

The acquisition is expected to provide additional details and milestones at Transcat's upcoming quarterly financial results conference call on August 7, 2025. Transcat continues to demonstrate its ability to attract and acquire highly sought-after calibration companies to expand its capabilities and geographic reach, while driving shareholder value [1].

References:
[1] https://asia.nikkei.com/business/aerospace-defense-industries