ESCO Technologies to Acquire Ultra Maritime Unit for $550 Million


ESCO Technologies announced plans to acquire Ultra Maritime’s Signature Management and Power business for $550 million. This division, specializing in signature and power management solutions for submarines and surface ships within the US and UK naval defense markets, will be integrated into ESCO’s aerospace and defense segment. ESCO Technologies, known for producing and supplying engineered products and systems for industrial and commercial markets, intends to finance the acquisition through a combination of cash on hand, incremental debt, and secured funding.

Ultra Maritime’s Signature Management and Power business is anticipated to generate approximately $175 million in revenue for the 2024 calendar year. With adjusted earnings before interest, taxes, depreciation, and amortization margins surpassing those of ESCO’s aerospace and defense segment, it represents a strategic addition. The business operates out of four facilities located in the US and UK, employing around 410 people and is headquartered in New York.

Follow us on Google News! ✔️

Bryan Sayler, CEO of ESCO, emphasized the strategic importance of the acquisition, noting that “Signature Management and Power is a long-tenured Navy supplier with sole source content on major existing platforms and significant growth opportunities on emerging international naval programs.” He added that this acquisition will enhance ESCO’s scale in the aerospace and defense portfolio while shifting the business mix towards high-growth, high-margin end markets.

In recent financial results, ESCO reported second-quarter sales of $249.1 million, an increase from $229.1 million in the previous year. The aerospace and defense segment contributed $114.7 million in revenue, reflecting a 16% annual increase. The company has maintained its fiscal 2024 sales outlook range of $1.02 billion to $1.04 billion.

During an earnings call in May, Sayler highlighted ESCO’s focus on merger and acquisition opportunities in markets with long-term growth potential, including commercial and military aerospace, Navy, and electrification sectors.

Pete Crawford, CEO of Ultra Maritime’s Signature Management and Power business, echoed the positive outlook, stating, “The transaction also represents a great outcome for our company and employees, with significant opportunities for growth ahead of us.”