ESCO Technologies acquires Signature Management & Power from Ultra Maritime for $550m

ESCO Technologies Inc. (NYSE: ESE) has announced its acquisition of Signature Management & Power from Ultra Maritime for a purchase price of $550 million. This strategic move will be funded through cash on hand and incremental debt, with committed financing already in place. The acquisition is a significant step for ESCO, as it expands its offerings in the naval defense sector, particularly in signature and power management solutions for submarines and surface ships.

Signature Management & Power is a recognized provider in the US and UK naval defense markets, bringing a range of mission-critical solutions that are expected to complement ESCO’s existing naval programs. Their products include advanced magnetic and electric field countermeasures and highly-engineered motors essential for stealth capabilities in naval vessels. This acquisition positions ESCO to capitalize on the increasing global naval defense spending and aging naval defense programs needing upgrades.

The acquisition of Signature Management & Power by ESCO Technologies marks a pivotal development in the naval defense sector, promising enhanced capabilities and broader market reach in the face of growing global defense demands.

Headquartered in Long Island, New York, and operating from four facilities across the US and UK, Signature Management & Power employs about 410 individuals. As a new part of ESCO’s Aerospace & Defense (A&D) segment, it is anticipated to generate approximately $175 million in revenue for the calendar year 2024, with Adjusted EBITDA margins surpassing those of the A&D segment.

Bryan Sayler, President and CEO of ESCO Technologies, expressed enthusiasm about integrating the Signature Management & Power team, noting the complementary nature of their products to ESCO’s submarine and defense platforms. Pete Crawford, CEO of Ultra Maritime’s business unit, highlighted the synergistic potential and growth opportunities post-acquisition.

J.P. Morgan Securities LLC served as the exclusive financial advisor, with Bryan Cave Leighton Paisner LLP acting as legal counsel to ESCO. Conversely, Lazard was the sole financial advisor for Ultra Maritime, with legal advice provided by Weil, Gotshal & Manges (London) LLP.