ESCO Corp. has announced that, after careful consideration, it has independently decided to remain a private company and will not proceed with an initial public offering (IPO).
ESCO chairman of the board, Steve Pratt, commented, “both the board and management team have concluded that the company’s impressive and increasing financial strength make an IPO unnecessary. We are better served remaining a private company at this time.”
This news comes amidst reports that ESCO has achieved record sales, profits and profit margins. The company is an independent designer, manufacturer and provider of wear parts and replacement products used in mining, construction, and oil and gas applications.
Esco’s announcement means it is voluntarily withdrawing its registration statement for common stock on Form S-1 (File No. 333-173841), filed originally on 2 May 2011 with the US securities and exchange commission, to register shares of its common stock in an IPO under the Securities Act of 1993. The registration statement has not been declared to be in effect by the SEC and no securities have been sold in connection with the offering, pursuant to the registration statement.
President and chief executive officer, Cal Collins, explained, “during the past two years, ESCO has achieved record sales, profits and profit margins, which affords us the ability to fund growth plans at a much lower cost that a new issuance of equity would offer. Quite simply, we have determined that ESCO can continue to provide excellent value to shareholders, opportunities for employees and quality products and services to customers as a private company.”
Adapted from press release by Samuel Dodson
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