ESCO Technologies Inc. has acquired LDIC GmbH. LDIC, with operations in Dresden, Germany, and Rheinfelden, Switzerland, is a manufacturer of state-of-the-art diagnostic test solutions serving the international electric utility industry. Terms of the deal were not disclosed.
LDIC's 2008 sales and percentage of earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to be approximately $10 million and 18.5 percent, respectively. The acquisition is expected to be accretive to ESCO's earnings in fiscal 2009, excluding the impact of purchase accounting, which has yet to be determined.
LDIC is a supplier of partial discharge diagnostic testing instruments and systems used to assess the integrity of high-voltage power delivery equipment. The company also provides an advanced surface acoustic wave sensor technology that enables utility customers to remotely monitor the condition of high voltage power lines.
LDIC's instruments are designed for permanent and periodic diagnostic testing of high-voltage transformers, switchgear, cables and large generators, and are widely used by manufacturers of such equipment and by electric utilities and the high voltage research community. Use of LDIC's test equipment can aid in preventing costly and catastrophic failures and improve the in-service life of high voltage power equipment.
LDIC will be part of Doble Engineering Company's European Group, which will serve to broaden the portfolio of intelligent diagnostic products and will expand the distribution channels for Doble's products and services throughout Europe. Additionally, Doble's more expansive distribution networks in the United States and Asia will provide LDIC with significant growth opportunities world-wide.
