ESCO Will Divest AMI Technology Company Aclara

By Editors of Electric Light & Power/ POWERGRID International

ESCO Technologies Inc. (NYSE: ESE) announced that it has signed an agreement to divest Aclara Technologies LLC to an affiliate of Sun Capital Partners Inc. Aclara integrates advanced AMI technologies to capture, analyze and apply utility data.

The gross cash proceeds from the transaction are expected to be approximately $150 million, comprised of a $130 million purchase price plus approximately $20 million in cash related to specific Aclara receivables retained by ESCO. The agreement is also subject to normal working capital adjustments.

The sale is expected to close in March 2014, subject to customary closing conditions and the satisfaction of regulatory requirements. The net cash proceeds from the sale are estimated to be approximately $130 million after taxes and expenses.

“This agreement creates an exciting opportunity for ESCO. After closing, and essentially debt free, ESCO will be a more strategically focused, higher margin business with a much steadier and predictable growth profile,” said Vic Richey, ESCO’s chairman and CEO. “This divestiture presents an improved outlook of our future and further enhances our ability to increase shareholder value.

“I would like to thank the Aclara employees and management for their outstanding contributions to ESCO over the years. Aclara and its employees have built a long track record of operational excellence and a strong commitment to customer success, and with Sun Capital’s support, I am confident Aclara will continue to prosper.”

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, delivery companies and industrial power users worldwide.  More information regarding ESCO and its subsidiaries is available on the Company’s website at

Aclara is the first acquisition in the utility space for Sun Capital Partners Inc.

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