Mr. Hadeed concluded, “We value Newark’s recognition of Transcat as a premier provider of quality calibrations services. We believe that partnering with Newark, both as Newark’s exclusive provider of certain calibration services and through our strategic sales and marketing alliance, is an excellent demonstration of the value we create by delivering precise, reliable, and fast calibration and repair services across the United States, Canada and Puerto Rico. We plan to leverage our combined sales and marketing resources and expanded base of calibration laboratories to provide our customers with the conveniences associated with our ever-growing local market presence, together with the confidence and consistency of quality of services supplied by our trained and certified technicians and extensive quality control processes accredited by the National Voluntary Laboratory Accreditation Program (NVLAP).”Transcat paid $3.0 million in cash for the acquisition. ABOUT TRANSCAT Transcat, Inc. is a leading distributor of professional grade, handheld test and measurement instruments and accredited provider of calibration, repair and other measurement services primarily for the pharmaceutical and FDA-regulated, industrial manufacturing, energy and utilities, chemical manufacturing, and other industries. Through its distribution products segment, Transcat markets and distributes national and proprietary brand instruments to nearly 15,000 customers. The Company offers access to more than 25,000 test and measurement instruments. Transcat delivers precise, reliable, and fast calibration and repair services across the United States, Canada and Puerto Rico through its now 17 strategically located Calibration Centers of Excellence. The breadth and depth of parameters covered by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be among the best in the industry. Transcat’s growth strategy is to expand both its distribution products and calibration services in markets that value product breadth and availability and rely on accredited calibration services to maintain the integrity of their processes. More information about Transcat can be found on its website at: 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 subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “could,” and other similar words. All statements addressing operating performance, events, or developments that Transcat, Inc. expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, sales operations, its strategy to build its sales representative channel, customer preferences and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Transcat’s Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.
Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leading distributor of professional grade handheld test and measurement instruments and accredited provider of calibration, repair and other measurement services, announced today that it has acquired the calibration services business from Newark, a subsidiary of Premier Farnell, PLC (LSE: PFL.L), and entered into a strategic alliance whereby Newark will market Transcat’s calibration services to its broad customer base of electronic design engineers, maintenance, repair and operations engineers, and industrial buyers. Newark has also contracted for Transcat to provide its calibration services for its own test and measurement equipment distribution needs. The asset purchase includes the calibration services assets of Newark’s calibration labs in Aurora, CO (Denver), Chandler, AZ (Phoenix) and Hendersonville, TN (Nashville). Charles P. Hadeed, President, CEO and COO of Transcat, commented, “We have completed four acquisitions in the last twelve months, three of which, including this acquisition, have expanded our calibration services segment geographic footprint. We now have 17 strategically located Calibration Centers of Excellence. Our strategy is to continue to capture a greater share of the calibration services market that values credible, certified calibrations by augmenting organic growth with acquisitions specifically targeting areas that extend our reach or are within our current geographic markets where we can consolidate services and gain scale.” Gert Labuschagne, President of Newark / element14, commented, “We are excited to enter into this arrangement with Transcat for a number of reasons. First and foremost, Transcat has an excellent reputation for the provision of the high quality calibration service that our customers demand and deserve. This alliance also fits well with our strategy to provide a comprehensive offering of components, design tools, software and services to our growing electronic design engineering customer base, as well as serving the needs of our maintenance, repair and operations engineer customers. This enhanced calibration service proposition will be delivered through a multi-channel approach including our element14 design engineering community with the knode, which supports the complete design flow from concept to final production, Newark.com, field sales and our state-of-the-art sales center. Finally, we are pleased that the arrangement provides for continuing employment and professional growth for all of our former calibration services employees with a company which, like Newark, places high value on employee engagement and satisfaction.”