ShockWatch Acquires ShockLog Impact and Environmental Recorders
1111 W. Mockingbird Lane, Suite 1050
Dallas, TX, 75247
Press release date: January 20, 2014
Media Recovery, Inc., a portfolio company of Capital Southwest Corporation (Nasdaq:CSWC), announced the acquisition by its ShockWatch division of ShockLog Impact and Environmental Recorders from The IMC Group, a manufacturer of electronic and mechanical instrumentation headquartered in Letchworth, United Kingdom. Terms of the transaction, which was completed on December 31, 2013, were not disclosed.
ShockLog Impact and Environmental Recorders monitor critical parameters and provide evidence that a shipment or equipment has experienced conditions that may have compromised its integrity, performance or safe operation. Since 1999, ShockWatch has had the exclusive rights to sell ShockLog recorders in the United States and the non-exclusive distribution rights in the rest of the world. During this period, ShockWatch has been instrumental in building a global presence for ShockLog, especially in the transformer, oil and gas, wind turbine and other industries. ShockLog products are very familiar to ShockWatch customers and employees.
"This acquisition makes perfect strategic sense for ShockWatch. We know the products, the markets and many ShockLog customers. We are proud to take ownership of the ShockLog brand and excited about its growth potential," said Angela Kerr, ShockWatch Vice President of Product Management and Marketing. "ShockWatch has led the industry in impact detection for almost 40 years. Acquiring this recorder impact technology will allow ShockWatch to broaden its customer base; extend its technical capabilities and introduce new products currently under development." To ensure continuity, The IMC Group Technical Director for ShockLog, Phil Wooldridge, has joined the ShockWatch team.
"Acquiring ShockLog represents a significant shift in our strategic direction," said Media Recovery, Inc. Chairman and CEO Gerard Smith. "Recently, we sold one of the three companies that comprised MRI. The sale of DPC to Hexacomb Corporation, a subsidiary of Boise, Inc., and a leading industry consolidator, allowed us to capture the value created by this business and to narrow MRI's strategic focus to two companies — DataSpan and ShockWatch. The DPC sale positioned us financially to be able to make a meaningful investment in ShockWatch, a business with significant long-term growth potential. The acquisition of ShockLog impact recorders, partially funded from the proceeds of the DPC sale, will be transformative for ShockWatch and of significant benefit to our customers, shareholders and employees."
"MRI has taken significant steps to transform the business, capture value and position the company for continued value creation going forward. Capital Southwest greatly values its 16 year relationship with MRI and we are enthusiastic about the future prospects and potential for the company," said Joseph B. Armes, President and Chief Executive Officer, Capital Southwest.
With the acquisition, ShockWatch gains all rights and control of the ShockLog products, including product development, marketing and global sales. Under terms of the agreement, The IMC Group will continue manufacturing ShockLog products for a period of time to ensure a seamless transition while ShockWatch acquires the processes and resources to manufacture this premium family of products. Additionally, The IMC Group retains distribution rights in the United Kingdom and the Republic of Ireland for all ShockWatch shipping and handling products, including ShockLog. IMC's customers in other nations are directed to purchase ShockLog products directly from ShockWatch.