ESCO Technologies acquires Megger for $2.3 billion, merges it with Doble Engineering

ESCO Technologies announced April 15 that it had acquired Megger Group Limited for $2.35 billion, including $900 million in cash and $1.4 billion in ESCO equity. The following day, Doble Engineering, an ESCO subsidiary, announced that the two companies would merge.

The deal will unite Megger, a portable offline test equipment and field instrumentation company, with Doble Engineering’s substation testing, condition monitoring, diagnostics, laboratory analytics, and engineering services business. The purchase is still subject to regulatory approval.

According to ESCO, adding Megger to the business is expected to generate $60 million in cost synergies within three years of closing the deal; expand ESCO’s reach in North America, the U.K., Europe, and Asia; and augment ESCO’s product portfolio into test equipment complementary with Doble’s current offerings.

In an April 16 joint statement, Doble said the purchase will enable ESCO to offer “end-to-end asset lifecycle visibility” and said customers would see improved investment planning and risk reduction.

ESCO Technologies, according to its website, operates in three divisions: aerospace and defense, utility solutions, and RF testing. The company’s website currently lists Doble as a part of its utility solutions segment alongside Morgan Schaffer, NRG Systems, ISA, TECHMP, and Phenix Technologies.

What people are saying

“This transformational transaction will expand our scale and international reach, further strengthening our position as a valued partner to utilities worldwide. The addition of Megger is a major milestone in our strategy to build a scaled, differentiated, high-margin utility solutions platform,” said Bryan Sayler, President and Chief Executive Officer of ESCO Technologies. “We have long admired Megger and view it as an exceptional strategic fit within our USG portfolio. Megger adds a respected and differentiated product portfolio, with highly complementary capabilities, deep technical expertise, and strong customer and supplier relationships.”

“We are incredibly proud of the exceptional platform we have built at Megger and believe ESCO is the ideal partner to accelerate the next stage of growth,” said Jeremy Abson, Chief Executive Officer of TBG. “We believe in the strategic vision of what the Doble and Megger combination can be in the future and are supportive of ESCO’s broader businesses and strategies.”