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ESE - ESCO Technologies Inc News Story

$84.48 -0.6  -0.7%

Last Trade - 18/09/20

Sector
Industrials
Size
Mid Cap
Market Cap £1.70bn
Enterprise Value £1.76bn
Revenue £589.7m
Position in Universe 1730th / 6396

ESCO Announces Acquisition of Plastique Group Limited

Mon 1st February, 2016 2:00pm
ST. LOUIS, February 1, 2016 - ESCO Technologies Inc. (NYSE: ESE) (ESCO, or
the "Company") today announced that it has acquired Plastique Group Limited
(Plastique). The terms of the transaction were not disclosed. 
 
 Plastique, which will become part of ESCO's Thermoform Engineered Quality LLC
(TEQ) operating subsidiary, is a market leader in the development and
manufacture of highly-technical thermoformed plastic and precision molded pulp
fiber packaging primarily serving pharmaceutical, personal care, and various
specialty end markets. 
 
 With annualized sales of approximately $35 million, Plastique is
headquartered in Tunbridge Wells, England, with manufacturing locations in
Nottingham, England and Poznan, Poland. 
 
 The addition of Plastique better positions TEQ for significant, profitable
growth by providing immediate access to new customers and new geographies in
both Europe and North America for both its existing thermoformed packaging
solutions as well as its new pulp fiber packaging capabilities. Plastique also
expands TEQ's growth opportunities within its existing medical device and
pharmaceutical customers. 
 
 Pulp fiber packaging better meets today's market requirements by preserving
the environment with a "greener" and more sustainable packaging solution.
Using compression molding and dry technology also produces a superior quality
with enhanced precision compared to traditional pulp packaging. Additionally,
pulp fiber complements and can be used in combination with traditional
thermoformed plastic to provide a unique, cost effective, and sustainable
packaging solution. 
 
 Randy Loga, President of TEQ, commented, "Adding Plastique's capabilities to
our product portfolio creates an exciting and meaningful growth opportunity
for TEQ by combining our unique technologies, product offerings, and
wide-spread geographies. Additionally, having both a North American and
European presence is a prerequisite to being a top-tier supplier to the larger
global medical device and pharma customers, and we are confident we can
exploit these new opportunities." 
 
 John Lowe, Managing Director of Plastique, commented, "Combining with TEQ
provides the group with significant opportunities to accelerate the growth of
our existing portfolio of businesses and allows us to expand into a broader
platform of new product development areas. The similarities within the two
operations are extensive and having the chance to jointly develop new market
opportunities across the globe is extremely exciting." 
 
 Vic Richey, Chairman and Chief Executive Officer, commented, "I'm excited
about the future growth prospects at TEQ as we continue to see meaningful and
tangible shareholder value creation in this area. With the addition of Fremont
Plastics and Plastique, both acquired at reasonable prices, we now have a
technical packaging solutions business approaching $100 million in annual
revenues with above industry-average profit margins. We now have a solid
foothold in Europe and have added a new complementary technical packaging
solution. We are confident in our ability to exploit our scale and our
expanded geographic footprint to accelerate growth in both sales and
profitability. I'm impressed with Plastique's proven track record of growth
and profitability as well as their strong and disciplined management team, and
I'm certain these common attributes fit well with TEQ and the other ESCO
family of companies." 
 
 Forward-Looking Statement 
 
 Statements in this release regarding sales, growth and benefits resulting
from the Plastique acquisition 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:
customer demand, technical issues, success of integration efforts, demand for
pulp packaging, exchange rates, plastic resin prices, the factors described in
Item 1A, Risk Factors, of the Company's annual report on Form 10-K for the
year ended September 30, 2105. 
 
 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, and delivery companies and industrial power users
worldwide. Further 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 
 HUG#1982419
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