The bolt-on acquisition at a low multiple (~0.34x revenue) adds meaningful aerospace/defense exposure without significant leverage strain. Monitor the next quarterly filing for revenue contribution and margin profile of the new platform; the credit facility remains available for further M&A.
Price Chart
Executive Summary
Eastern Company acquired Sungear and Crown Precision for $7.85 million in aggregate consideration, funded via its existing revolving credit facility. The acquired businesses generated approximately $22.8 million in trailing twelve-month revenue, establishing a fourth operating platform in aerospace/defense precision manufacturing.
Key Facts
- Acquired 100% equity of Sungear and Crown Precision for $7.85 million on a cash-free debt-free basis
- Combined trailing twelve-month revenue of roughly $22.8 million through April 1, 2026
- Transaction funded entirely through Eastern's existing revolving credit facility with Citizens Bank
- Fourth operating platform added, complementing Eberhard Manufacturing, Velvac, and Big 3 Precision
- Existing management teams retained under Eastern's decentralized holding-company model
Financial Impact
Acquisition price of $7.85 million vs ~$22.8M trailing revenue implies roughly 0.34x revenue multiple, modestly accretive for a $130M market-cap company
Risk Factors
- Integration risk—Sungear and Crown must continue operating under existing management without disruption
- Aerospace/defense end-market cyclicality could affect the new platform's revenue stability
- Additional leverage from the revolving credit facility may increase interest expense if rates rise
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001654954-26-005609 |
| Document: eml_ex991.htm | 0001654954-26-005609 |
| Document: 0001654954-26-005609-index-headers.html | 0001654954-26-005609 |
| Document: 0001654954-26-005609-index.html | 0001654954-26-005609 |
| Document: 0001654954-26-005609.txt | 0001654954-26-005609 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 17, 2026 5w ago | Insider Cluster | $24.66 | awaiting T+60 | — | $24.13 (−2.15%) |
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