Griffin Serves as Investment Banker to TESCO in $35 Million Minority Equity Transaction

Company Overview

TESCO – The Eastern Specialty Company (TESCO) is an international leader in manufacturing electric meter testing equipment and related products and services distributed to electric utilities across North America, Europe and Southeast Asia. Founded in 1904 and based in Bristol, PA, TESCO has been the trusted leader in custom utility products and American-made metering equipment for more than 120 years, providing field testing, transformer testing, test switches, Zero Infrastructure AMI, custom metering equipment, meter shop and software, as well as electric vehicle supply equipment. TESCO is owned and led by Tom Lawton, and today employs more than 225 people, with additional locations in Ohio, Canada and the Philippines.

Situation

After spearheading the acquisition of TESCO in 2003, Tom Lawton grew the business both organically and through acquisition. In 2020, with the help of Griffin, Lawton bought out his co-founder and became the sole shareholder of TESCO. Since then, the Company has continued its growth, more than doubling revenue and expanding margins. Reaching an inflection point in 2026, TESCO sought growth capital and a resourceful partner to continue to expand the business via acquisition, new product lines, expanded footprint and more, as well as to recapitalize the balance sheet. Tom was seeking a junior capital partner, which would allow him to remain the majority owner and continue his role as CEO of TESCO.

Solution

TESCO engaged Griffin as its exclusive investment banker to solicit interest in a junior capital investment via a competitive process. After a robust and well-subscribed process (55+ proposals), Lawton was left with a variety of control equity, minority equity and hybrid debt/equity options, and ultimately chose a minority equity option with Alaris Equity Partners, a Calgary, Alberta-based structured equity investor that partners with private companies, to provide long-term capital while allowing the business owners to maintain control of their business. Alaris provided $28 million in preferred equity and $7 million in common equity, which allowed TESCO to repay its existing term debt and fund future organic and inorganic growth.

For more information on this transaction, please contact John Lee, Head of Commercial, Industrial and Services, at 610.205.6106, Stephen Meehan, Director, at 610.205.6016, Jeff Tallman, Vice President, at 610.205.6013 or Teddy Geraghty, Analyst, at 610.205.6013.