Mesa Laboratories, Inc. (NASDAQ:MLAB) announced on July 2 that it has acquired from ST Acquisitions, LLC the SureTorque line of bottle cap torque. All the assets of ST Acquisitions have been acquired by Mesa which includes manufacturing, design, sales and service of ST Acquisitions’ line of bottle cap torque testing instrumentation. The acquisition would benefit the company by enhancing the cash flow of the company and modestly enhance the earnings per share the fiscal year ending March 31, 2014. SureTorque’ production would be transferred from its current location in Florida to Lakewood, Colorado facility to merge with Mesa’s existing Torqo product line.
SureTorque has a wide experience in the production of automated bottle cap torque testing instruments. The company’s line of instruments includes various products that range from lower cost versions up to fully automated, semi-automated, in-line instruments. The SureTorque’ wide range of products can be used in various industries which include biotechnology, food & beverage and pharmaceutical.
John J. Sullivan, CEO and President of Mesa stated that the acquisition would be a great addition to the company’s existing line of instrumentation products. The company had entered into the bottle cap torque testing market in 2009 after acquiring Torqo line of products from Vibrac, LLC. The company’s existing products have gained a foothold in the beverage industry, and also a reasonable market in the pharmaceutical industry. To gain a strong foothold in the pharmaceutical and biotechnology industries Mesa acquired SureTorque products which currently has a strong presence in the same. The acquisition would help the company offer a wide range of products and expand its customer base. Mesa has a strategy of entering into markets where competition is limited, and the company can generate decent gross margins.
The stock went down by 0.38% to close at $54.79 in its previous trading session. The market capitalization of the company at current levels is $186.06 million at current levels.
