Eastern Company acquires Big 3 Precision from TVV Capital for $81.7M
The Eastern Company announced that it has acquired 100% of the outstanding shares of Big 3 Precision Products and Big 3 Precision Mold Services for $81.7M from TVV Capital. Big 3 Precision is a provider of turnkey packaging solutions. Through its two segments, Big 3 Precision Products and Big 3 Precision Mold Services, Big 3 Precision serves diverse markets including truck, automotive, plastic packaging products, packaged consumer goods and pharmaceuticals. Big 3 Precision Products works with leading manufacturers to design and produce custom returnable packaging to integrate with their assembly processes. Big 3 Precision Mold Services is a global leader in the design and manufacture of blow mold tools. Based on its unaudited, internal financial statements, Big 3 Precision generated sales of $72.2M and Adjusted EBITDA of $13.4M for the twelve months ended June 30, 2019. Moreover, based on its audited financial statements, Big 3 Precision has posted double digit sales growth in each of the last 5 fiscal years. The transaction is expected to be immediately accretive, excluding transaction expenses and purchase accounting adjustments, and accretive by at least 40c per share to EPS in Fiscal 2020. To fund the transaction, Eastern has refinanced its existing credit agreement with a new $100M term loan and $20M revolving credit facility.