Sparton to be Acquired by Cerberus
December 12, 2018 | Sparton Corp.Estimated reading time: 2 minutes
Sparton Corporation has entered into a definitive agreement to be acquired by an affiliate of Cerberus Capital Management, L.P. Under the terms of the agreement, Cerberus will acquire all outstanding shares of Sparton’s common stock for $18.50 per share in cash.
The $18.50 per share consideration represents a premium of approximately 41% over Sparton’s closing share price on December 11, 2018. The Sparton Board of Directors has unanimously approved the agreement and recommends that the Company’s shareholders approve the transaction.
“This transaction is the result of the significant time and effort the Company has invested in its previously announced process to explore strategic alternatives, including a potential acquisition of Sparton,” said Joseph J. Hartnett, Interim President and Chief Executive Officer of Sparton. “We are pleased to have successfully concluded our process with a transaction that delivers significant value to the shareholders of Sparton.”
“In addition to delivering immediate value to our shareholders, this transaction provides Sparton with a long-term partner that is focused on building upon our strong platform. Cerberus is recognized as a leading investor in global technology and manufacturing companies that brings significant operational expertise, in addition to its financial capital and acumen. Together, we will be able to capitalize on strategic growth opportunities, while continuing to meet the needs of our customers by delivering high-quality, innovative solutions and services,” Hartnett continued.
“Sparton has a proven track record as a leading manufacturer of complex electromechanical devices for leading businesses and government agencies around the world. With its industry-leading solutions and strong customer relationships, we believe there is significant opportunity to further expand the Company’s leadership position in its markets. We look forward to partnering with Sparton’s talented employees to serve its customers with best-in-class solutions, build upon the foundation of excellent capabilities already in place, and help Sparton achieve its full potential for growth,” said Tarek Ajouz, managing director of Cerberus.
The transaction, which is subject to the receipt of Sparton shareholder approval, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions, is expected to close in the first calendar quarter of 2019. Additional details regarding the transaction will be set forth in a proxy statement that will be sent by Sparton to its shareholders in advance of the special meeting at which Sparton’s shareholders will be asked to approve the transaction.
Debt financing for the transaction is being provided by accounts managed by TCW Asset Management Company, LLC and MSD Partners, L.P.
J.P. Morgan Securities LLC acted as financial advisor to Cerberus and Lowenstein Sandler LLP, Kirkland & Ellis LLP, and Blank Rome LLP acted as legal counsel to Cerberus.
Wells Fargo Securities, LLC and Raymond James & Associates, Inc. acted as financial advisors to Sparton. Mayer Brown LLP acted as legal counsel to Sparton.
About Sparton Corporation
Sparton Corporation, now in its 118th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service and refurbishment. The primary markets served are Medical & Biotechnology, Military & Aerospace and Industrial & Commercial. Headquartered in Schaumburg, Illinois, Sparton currently has thirteen manufacturing locations and engineering design centers worldwide.
Suggested Items
Siemens Partners with Microsoft to Deliver AI-enhanced Solutions for Resilient Product Lifecycle Management with Azure
05/14/2024 | PRNewswireSiemens Digital Industries Software announced an expansion of its partnership with Microsoft to make the Siemens Xcelerator as a Service portfolio of industry software available through Microsoft's cloud and AI platform Azure and integrating it with generative AI and Copilot features.
Sondrel Awarded New Video Processor ASIC Design and Supply Contract
05/09/2024 | SondrelSondrel, a leading provider of ultra-complex custom chips for leading global technology brands, is pleased to announce that it has won a major ASIC design and supply contract for a next generation, video processing chip.
Cigent, Swissbit Announce Partnership to Enhance Endpoint Data Security
05/06/2024 | CigentCigent, a leading provider of endpoint data protection solutions, and Swissbit, a leading manufacturer of storage, security, and embedded IoT solutions, today announced a strategic partnership to offer a comprehensive portfolio of secure storage drives designed to safeguard endpoint data against a growing landscape of cyberthreats.
Koh Young Extends Invitation to the 2024 IEEE Electronic Components and Technology Conference
04/30/2024 | Koh YoungKoh Young, the industry leader in True3D measurement-based inspection solutions, invites you to join us at the at the 2024 IEEE Electronic Components and Technology Conference from May 28-31, 2024, in Denver, Colorado at the Gaylord Rockies Resort & Convention Center.
Real Time with... IPC APEX EXPO 2024: Sustainability in the Industry
04/26/2024 | Real Time with...IPC APEX EXPOGuest Editor Henry Crandall and Chris Nash of Indium Corporation discuss the company's 90th anniversary and its focus on sustainability. They focus on the benefits of sustainable materials, their compatibility, and value propositions. The conversation also highlights how Durafuse LT technology's role in reducing reflow temperatures is leading to significant cost and energy savings. Nash also touches on downstream sustainability efforts such as using recycled materials for packaging.