Sparton Corporation (NYSE:SPA) shares were fairly flat early Thursday after the company agreed to be purchased by Cerberus.
Cerberus claims to be a global leader in alternative investing. Under the terms of the agreement, Cerberus will acquire all outstanding shares of Sparton’s common stock for $18.50 per share in cash, representing a premium of approximately 41% over Sparton’s closing share price on December 11.
The Sparton Board of Directors has unanimously approved the agreement and recommends that the Company’s shareholders approve the transaction.
Interim Sparton CEO Joseph Hartnett said, "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.
"We are pleased to have successfully concluded our process with a transaction that delivers significant value to the shareholders of Sparton."
Cerberus Managing Director Tarek Ajouz, commented, "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."
Sparton, headquartered in Shaumburg, Illinois, is now in its 119th year. The company 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.
Shares in SPA lost two cents to $18.30
