Velvac, Inc. to become portfolio company of the Eastern Company
Monday, April 17, 2017
Velvac, Inc., a leading designer and manufacturer of proprietary vision system technology for commercial and recreational vehicles, has been acquired by The Eastern Company (NASDAQ: EML). Velvac was sold by Chicago private equity firm Prospect Partners, which had acquired the company with Jeff Porter in August 2005.
Founded in 1934, Velvac is one of the leading Tier 1 suppliers of vision systems to the heavy and medium duty truck, motorhome, specialty vehicle, and bus markets in North America, with 2016 revenues of approximately $60 million. Having introduced its first camera-enabled vision systems in 2006, Velvac is now the leading supplier of integrated camera/rear-view mirror vision systems for commercial vehicles in North America. Through Velvac’s Road-iQ subsidiary, the company offers its VideoData Server product which features video recording, mobile device connectivity, remote access via a web portal, and a six-camera 360 degree view around the vehicle. Velvac also sells a broad line of aftermarket components and vision systems through its aftermarket channels, OEM dealers, and OEM parts distribution centers.
“We are proud of the team and the business we have built over the past 11 years,” stated Velvac President and CEO Jeff Porter, “the investments we have made in electronic vision system technology during that time have positioned Velvac to lead the market transformation that is occurring towards smarter, more connected vehicles. The transaction with Eastern now gives us the stable, knowledgeable platform we need to continue to grow, and we’re excited to take Velvac to the next level.” Velvac will become an independent, stand-alone subsidiary of Eastern and Mr. Porter will continue to lead the business as President and CEO.
“We are delighted to add Velvac to our portfolio of businesses,” said August Vlak, President and CEO of Eastern. “Velvac represents an excellent fit for Eastern, expanding our presence in the truck and motorhome markets. This transaction also adds a new growth platform to Eastern, with significant potential to expand margins in the future.”
The growth of Velvac over the past 11 years has been significant, with the company receiving recognition in 2015 as one of Wisconsin’s fastest growing companies. The recent acquisition by publicly traded Eastern should provide Velvac with the access to needed capital for even greater growth in the future.