ESCO Technologies Inc. announced it has entered into a definitive agreement to sell its VACCO Industries subsidiary to RBC Bearings Incorporated for $310 million in cash. The transaction is expected to finalize upon receipt of customary regulatory approvals.
This divestiture follows a strategic review of the VACCO business, initiated in August of the prior year, and aligns with ESCO’s long-term strategy to focus its portfolio on core high-growth end-markets. VACCO, a key supplier of highly-technical mission-critical solutions, has been part of ESCO since its formation in 1990.
The gross cash proceeds of $310 million are planned to be used for paying down debt incurred in connection with the recent Maritime acquisition. Management views this transaction as a positive outcome for all parties, positioning VACCO for a positive future with RBC Bearings while streamlining ESCO's operations.
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