RBC Bearings completes $275 million acquisition of VACCO Industries

OXFORD, Connecticut - RBC Bearings Incorporated (NYSE:RBC) announced Monday it has completed its previously announced acquisition of VACCO Industries from ESCO Technologies Inc. (NYSE:ESE) for $275 million in cash, subject to post-closing adjustments. ESCO Technologies, currently trading near its 52-week high of $198.34, has demonstrated remarkable market performance with a 67% return over the past year.

The precision bearings manufacturer funded the purchase through a combination of a draw on its $500 million bank revolving credit facility and available cash on hand.

VACCO Industries, headquartered in South El Monte, California, manufactures valves, manifolds, regulators, filters and other precision components for space and naval defense applications. The company specializes in mission-critical components designed to function in extreme environments.

The acquisition expands RBC Bearings’ portfolio in the aerospace and defense sectors. RBC Bearings is an international manufacturer of engineered precision bearings, components and essential systems serving diversified industrial, aerospace and defense markets.

The transaction was initially announced earlier this year, according to the company’s press release statement.

RBC Bearings is headquartered in Oxford, Connecticut, and trades on the New York Stock Exchange under the ticker symbol RBC, while ESCO Technologies trades under ESE.

In other recent news, RBC Bearings Incorporated announced a definitive agreement to acquire VACCO Industries for $310 million in cash. This acquisition aims to enhance RBC’s product offerings in the space and naval defense sectors, with VACCO reporting revenues of approximately $118 million in the year leading up to March 2025. The transaction is expected to close this summer, pending regulatory approval, and will be financed through RBC’s existing credit agreement and cash reserves. Meanwhile, ESCO Technologies reported a strong financial performance for the second quarter of fiscal year 2025, with a 24% increase in adjusted earnings per share (EPS) to $1.35 and a 6.6% rise in sales. The company achieved a record backlog of $932 million and completed the acquisition of SMMP, now rebranded as ESCO Maritime Solutions. Analysts noted that ESCO’s actual EPS surpassed forecasts by approximately 12.5%, reflecting the company’s trend of exceeding expectations. For the full fiscal year, ESCO has revised its sales growth guidance to 6-8% and expects adjusted EPS to range between $5.65 and $5.85.

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