Transcat, Inc. has recently acquired Becnel Rental Tools, LLC for a purchase price of $50 million, paid in a combination of $32.5 million in company stock and $17.5 million in cash. This acquisition, effective April 15, 2024, is expected to further expand Transcat's higher margin rental business. Becnel is an ISO 9001:2015 certified provider of rental tools and services primarily used in the decommissioning and maintenance of oil wells.
Transcat's President and CEO, Lee Rudow, expressed confidence in the acquisition, noting that Becnel operates in a niche part of the oil and gas industry and is largely isolated from inherent market volatility. The acquired EBITDA for this deal is approximately $5.8 million. Rudow also highlighted the potential for cross-selling of Transcat’s calibration services and core distribution products to Becnel's strong customer base.
The press release further emphasized that Becnel's rental business, although different in terms of the nature of the equipment being rented, is consistent with Transcat's overall business objectives, providing opportunities for expansion, profit/margin enhancement, cross-selling, and lead generation for the services business. The acquisition is expected to contribute to the expansion of Transcat's offerings, profit and margin enhancement, and provide cross-selling opportunities.
Transcat, Inc. is a leading provider of accredited calibration, reliability, maintenance optimization, quality and compliance, validation, computerized maintenance management system (CMMS), and pipette services. The company operates as a leading value-added distributor that markets, sells, and rents new and used national and proprietary brand instruments to customers primarily in North America.
As a result of these announcements, the company's shares have moved -0.0% on the market, and are now trading at a price of $110.26. For the full picture, make sure to review Transcat's 8-K report.
