ESCO Acquires Diagnostic Solutions Company Serving the International Electric Utility Industry
ST. LOUIS, Aug. 4 /PRNewswire-FirstCall/ -- ESCO Technologies Inc. (NYSE: ESE) today announced that it has acquired LDIC GmbH ("LDIC"). LDIC, with operations in Dresden, Germany and Rheinfelden, Switzerland, is a manufacturer of state-of-the-art diagnostic test solutions serving the international electric utility industry. Terms of the deal were not disclosed.
LDIC's 2008 sales and percentage of earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to be approximately $10 million and 18.5 percent, respectively. The acquisition is expected to be accretive to ESCO's earnings in fiscal 2009, excluding the impact of purchase accounting, which has yet to be determined.
LDIC is a leading supplier of "partial discharge" diagnostic testing instruments and systems used to assess the integrity of high voltage power delivery equipment. The company also provides an advanced surface acoustic wave sensor technology that enables utility customers to remotely monitor the condition of high voltage power lines.
LDIC's instruments are designed for permanent and periodic diagnostic testing of high voltage transformers, switchgear, cables and large generators, and are widely used by manufacturers of such equipment and by electric utilities and the high voltage research community. Use of LDIC's test equipment can aid in preventing costly and catastrophic failures and improve the in-service life of high voltage power equipment.
LDIC will be part of Doble Engineering Company's ("Doble") European Group, which will serve to broaden the portfolio of high quality intelligent diagnostic products and will significantly expand the distribution channels for Doble's products and services throughout Europe. Additionally, Doble's more expansive distribution networks in the United States and Asia will provide LDIC with significant growth opportunities world-wide.
Vic Richey, ESCO's Chairman and Chief Executive Officer, commented, "We are pleased to have LDIC and its strong management and product development teams become part of Doble and our Utility Solutions Group. The products and services LDIC provides are very well respected throughout the industry, and perfectly complement Doble's existing product lines, allowing us to better serve our valued electric utility customers."
Mr. Richey concluded, "This acquisition not only enhances our portfolio of diagnostic products offered to the utility industry, but has the added benefit of establishing a base of operations in both Germany and Switzerland, which is in keeping with our goal of expanding internationally."
Bob Smith, Doble's President and Chief Executive Officer, added, "The LDIC products are becoming increasingly recognized for the value added benefits that they provide to their customers. We have enjoyed a close business relationship with LDIC for a number of years, and are excited that they are now part of our family of companies. This acquisition is yet another indication of our intention to serve the utility industry on a global basis."
Forward Looking Statement
Statements in this press release regarding LDIC's 2008 expected sales and EBITDA percentage, future LDIC growth opportunities, the impacts, financial and otherwise, of such acquisition to ESCO 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, speak only as of the date of this release and the Company undertakes no duty to update. The Company's actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company's operations and business environment, including but not limited to: material changes in the LDIC and Doble businesses, technical difficulties, competition, changes in customer demands, intellectual property rights, the Company's successful execution of internal operating plans and the risk factors identified in Item 1A of the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2007 and Item 1A of the company's Form 10- Q for the three months ended June 30, 2008.
ESCO, headquartered in St. Louis, Missouri is a proven supplier of special purpose communications systems for electric, gas and water utilities, including hardware and software to support advanced metering applications. In addition, the Company provides engineered filtration products to the transportation, health care and process markets worldwide and is the industry leader in RF shielding and EMC test products. Further information regarding ESCO and its subsidiaries is available on the Company's website at http://www.escotechnologies.com.
SOURCE ESCO Technologies Inc.
CONTACT: Patricia K. Moore, Director, Investor Relations of ESCO
Technologies Inc., +1-314-213-7277; or media inquiries, Dan Callahan,
+1-314-982-0553, for ESCO Technologies Inc.
Web site: http://www.escotechnologies.com