The Eastern Co. today (April 4) announced that it has reached an agreement to acquire 100% of the outstanding shares of Velvac Holdings, a designer and manufacturer of proprietary vision technology for motorhomes and commercial vehicles. According to a statement, Velvac recorded net sales of $58.7 million for fiscal year 2016.
Velvac President and CEO Jeff Porter noted, “We are proud of the team and the business we have built over the past 11 years with the support of Prospect Partners. Eastern now gives us the stable, knowledgeable platform we need to grow, and we are excited to partner with Eastern to help take Velvac to the next level.”
The transaction is expected to be “breakeven,” including purchase accounting expenses but before one-time transaction costs, in the current fiscal year. The acquisition is projected to be accretive to Eastern’s earnings in fiscal 2018.