Diversified manufacturer Eastern Co. is making a big move into blow mold tooling and returnable packaging with the acquisition of Big 3 Precision, a move Eastern says will immediately increase its profitability.
Eastern, based in Naugatuck, Conn., is buying Big 3 Precision for $81.7 million from TVV Capital, a move that will add at least 40 cents per share in fiscal year 2020, the company said.
The acquisition includes both Big 3 Precision Products Inc., a maker of returnable plastic and metal packaging, and Big 3 Precision Mold Services Inc., a maker of blow molding tooling.
Big 3, based in Centralia, Ill., had total sales of $72.2 million for the fiscal year ending June 30 with adjusted earnings before interest, tax, depreciation and amortization of $13.4 million, Eastern said. The company has enjoyed double-digit sales increases for five years in a row.
TVV Capital, an investment firm, is based in Nashville, Tenn.