SHELTON, CT - The Eastern Company (NASDAQ:EML) announced today the acquisition of Sungear, LLC and Crown Precision for $7.85 million in aggregate consideration on a cash-free, debt-free basis, according to a press release statement.
The transaction establishes a fourth operating platform for Eastern, adding to its existing portfolio of Eberhard Manufacturing, Velvac, and Big 3 Precision. Both acquired companies are California-based precision manufacturers of high tolerance components serving aerospace and defense markets.
The acquisitions were funded through borrowings under Eastern’s existing revolving credit facility with Citizens Bank, N.A. The company maintains a healthy balance sheet with a current ratio of 3.52 and a debt-to-equity ratio of 0.43, according to InvestingPro data. On a combined basis, Sungear and Crown generated approximately $22.8 million of revenue for the trailing twelve months ended April 1, 2026. This acquisition represents roughly 9% of Eastern’s total revenue of $245.33 million over the last twelve months, with the company carrying a market capitalization of $129.79 million.
San Diego-based Sungear manufactures precision gears and subassemblies for commercial and defense aerospace end markets. Irwindale, California-based Crown Precision produces high-tolerance actuation components and assemblies for commercial, private, and military aircraft programs, specializing in precision machining of rod ends, glands, bushings, caps, and plates using aircraft-grade alloys.
Both companies will continue to be led by their existing management teams, with Eastern providing financial discipline, strategic guidance, and access to capital.Eastern’s long-term shareholder commitment is evidenced by its 56 consecutive years of dividend payments, currently yielding 2.04%. For investors seeking deeper insights, InvestingPro offers comprehensive analysis including Fair Value estimates and additional ProTips for EML.
"This transaction creates a fourth operating platform for Eastern that expands our presence in the aerospace and defense markets in a disciplined manner," stated Ryan A. Schroeder, President and Chief Executive Officer of The Eastern Company.
The Eastern Company manages businesses that design, manufacture and sell engineered products and solutions for industrial markets. The company operates from locations in the U.S., Canada, Mexico, Taiwan, and China.
In other recent news, The Eastern Company reported its financial results for the first quarter of 2026, revealing a shortfall in both earnings and revenue. The company posted earnings per share (EPS) of $0.11, which was below the forecasted $0.50. Additionally, revenue came in at $59.7 million, missing the anticipated $67.74 million. Despite these disappointing results, the company’s stock price remained stable in aftermarket trading. There were no significant changes in the stock’s closing price following the earnings announcement. These developments highlight the challenges The Eastern Company faces in meeting market expectations. Investors and analysts will likely keep a close watch on the company’s strategies to address these financial shortfalls.
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