ROCHESTER, NY, January 03, 2022–(BUSINESS WIRE)–Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leading provider of accredited calibration, repair, inspection and laboratory instrument services and value-added distributor of portable instruments professional quality test, measurement and control company, announced that it had purchased all of the shares of privately-held Tangent Labs, LLC (Tangent), effective December 31, 2021. The purchase price was $9.0 million and is subject to certain customary holdback provisions.
Founded in 1995 and based in Indianapolis, IN, Tangent provides in-house and on-site calibrations of precision measurement and control instruments to customers in the life sciences, aerospace and other regulated industries. With annual sales of approximately $2.2 million, Tangent offers ISO/IEC 17025 accredited calibrations and has laboratories located in Indianapolis and Huntsville, Alabama. Kevin Broderick, owner of Tangent, will join Transcat and continue to lead the company.
“Tangent fits naturally into our geographic expansion strategy as it gives us a new local presence in two attractive regions of the country that fit perfectly with our operational footprint,” commented Lee Rudow, President and CEO. “Indiana has a large and growing market for life sciences and medical devices, while Huntsville, Alabama is a large military/aerospace market. Additionally, Tangent is a very well-managed company that has successfully automated certain elements of its calibration program to help drive an extremely strong profitability profile.We are pleased to welcome Kevin and the Tangent team to Transcat.
Transcat, Inc. is a leading provider of accredited calibration, repair, inspection and laboratory instrumentation services. The company is focused on providing best-in-class services and products to highly regulated industries, particularly the life sciences industry, which includes pharmaceuticals, biotechnology, medical devices and other regulated activities. by the FDA; as well as aerospace and defense, and energy and utilities. Transcat provides periodic on-site services, mobile calibration services, pickup and delivery, in-house services at its 22 calibration service centers strategically located in the United States, Puerto Rico and Canada, and in 20 integrated customer sites. The breadth and depth of measurement parameters covered by Transcat’s ISO/IEC 17025 accreditation scopes are considered the best in the industry.
Transcat also operates as a premier value-added distributor that markets, sells and leases new and used national and exclusive brand instruments to customers primarily in North America. The Company believes that its combined offerings, experience, technical expertise and integrity in the Service and Distribution segments create a unique and compelling value proposition for its customers.
Transcat’s strategy is to leverage the complementary nature of its two operating segments, comprehensive service capabilities, strong brand, enhanced e-commerce capabilities and leading distribution platform to drive organic sales growth. The company will also seek to expand its addressable calibration market through acquisitions and capacity investments to further realize the leverage inherent in its business model.
For more information about Transcat, visit: Transcat.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and are therefore subject to risks, uncertainties and assumptions. Forward-looking statements are identified by words such as “expects”, “estimates”, “projects”, “anticipates”, “believes”, “could”, “anticipates”, “aims” and similar words. All statements regarding operational performance, events or developments that Transcat, Inc. expects or anticipates to occur in the future, including, but not limited to, statements relating to anticipated revenues, profit margins, the company’s response to the coronavirus (COVID-19) pandemic, software project release, sales operations, capital expenditures, cash flow, operating income, strategy growth rates, segment growth, potential acquisitions, integration of acquired businesses, market position, customer preferences, prospects and changes in market conditions in the industries in which Transcat operates are forward-looking statements . Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include those described in more detail in Transcat’s annual report and quarterly reports filed with the Securities and Exchange Commission, including under the heading “Risk Factors”. Should one or more of these risks or uncertainties materialize, or should one of the Company’s underlying assumptions prove incorrect, actual results could differ materially from those currently anticipated. Additionally, undue reliance should not be placed on the Company’s forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revision to any of the forward-looking statements contained in this press release, whether as a result of new information , future events or otherwise.
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Mark A. Doheny