Esco Technologies, Inc. (ESE - $92.50 - NYSE) (ESE, Financial) is a producer of highly engineered, specialty products for the utility, aerospace/defense, wireless test and packaging industries. The company posted another year (September fiscal year end) of solid results as its business drivers such as utility grid infrastructure upgrades, commercial aerospace and defense spending, and 5G wireless network builds have been relatively immune to the trade war and economic growth issues. Since its spin-off from Emerson Electric, the company has always stated that Packaging and Wireless Test were lower margin, lower return businesses and thus, non-core long-term. Consolidation in the packaging space resulted in a rich offer price for Esco’s packaging group, and its recent sale gives the company more firepower for accretive acquisitions in its core Utility and Aerospace/Defense businesses.
From Keeley Asset Management's Keeley Small-Mid Cap Value Fund fourth-quarter 2019 shareholder commentary.
Also check out:
