Transcat Views Becnel As A Great Addition To Its Rental Portfolio With Expected Margin Boost: Details

Transcat Inc TRNS has acquired privately-held Becnel Rental Tools LLC, effective April 15, 2024.

The $50 million purchase price involves a combination of $32.5 million in company stock and $17.5 million in cash.

Transcat provides accredited calibration services, cost control and optimization services, and distribution and rental of value-added professional grade handheld test, measurement, and control instrumentation.

Founded in 2012, Becnel is an ISO 9001:2015 certified provider of rental tools and services mainly deployed in the decommissioning and maintenance of oil wells.

The existing staff and leadership team, led by current Becnel President Jason Becnel, will remain in place to strategically drive the business and service customers’ needs.

“This rental business is different than our existing rental businesses in terms of the nature of the equipment being rented but is very consistent in the opportunities it provides to the overall Transcat business, which are expansion of our offerings, profit/margin enhancement, cross-selling opportunities, and lead generation for our Services business,” said President and CEO Lee Rudow.

“Similar to the rest of our rental portfolio, this business performs very well financially and will provide expansion to our overall Gross Margins and EBITDA Margins for both our Service and Distribution segments. The total acquired EBITDA for this deal is approximately $5.8 million.”

Transcat held $35.2 million in cash and equivalents as of December 23, 2023.

Price Action: TRNS shares are trading lower by 0.09% at $110.19 on the last check Monday.