Transcat Further Expands Its Higher Margin Rental Business With The Acquisition Of Becnel Rental Tools For $50M, Combination Of $32.5M In Company Stock And $17.5M In Cash
Portfolio Pulse from Benzinga Newsdesk
Transcat, Inc. (NASDAQ:TRNS) has acquired Becnel Rental Tools LLC for $50M, aiming to expand its higher margin rental business. The acquisition, paid with $32.5M in company stock and $17.5M in cash, brings Becnel's expertise in rental tools for oil well decommissioning and maintenance into Transcat's portfolio. This move is expected to enhance Transcat's gross and EBITDA margins, offer cross-selling opportunities, and support future growth in the decommissioning sector.
April 15, 2024 | 1:13 pm
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Transcat's acquisition of Becnel Rental Tools for $50M, paid partly in stock and cash, aims to expand its rental business and capitalize on the growing need for oil well decommissioning. This strategic move is expected to improve Transcat's financial performance by enhancing gross and EBITDA margins.
The acquisition of Becnel Rental Tools is directly aimed at expanding Transcat's rental business, particularly in a niche market with growing demand. By integrating Becnel's expertise and customer base, Transcat is likely to see an enhancement in its financial metrics, including gross and EBITDA margins. The strategic fit and potential for cross-selling Transcat's existing services suggest a positive outlook for the company's stock in the short term.
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