Elbit Systems of America Completes Acquisition of Sparton Corporation
Elbit Systems of America has acquired Sparton Corporation for $380 million, enhancing its presence in the undersea warfare sector. Sparton, a key supplier for the U.S. Navy, brings over 120 years of defense experience. The acquisition aims to leverage increased demand for undersea products amidst rising threats in the Indo-Pacific and Atlantic regions. An independent U.S. Proxy Board has been established to oversee Sparton's undersea activities. This strategic move is expected to fuel growth for Elbit Systems, supporting expansion and innovation in critical defense solutions.
- Acquisition price of $380 million expected to enhance product offerings.
- Strengthens relationship with the U.S. Navy, a key customer.
- Anticipated growth in the undersea warfare market due to increased demand.
- Establishment of an independent Proxy Board to focus on U.S. defense solutions.
- None.
HAIFA, Israel, April 6, 2021 /PRNewswire/ -- Elbit Systems of America, LLC ("Elbit Systems of America") has completed the acquisition of Sparton Corporation ("Sparton") from an affiliate of Cerberus Capital Management, L.P. for
Sparton, with its 120-year history and decades of defense experience spanning from World War I to today, is a U.S.-based premier supplier of critical undersea warfare solutions to the U.S. Navy and its allies, as well as engineered products for the defense industry.
"We welcome Sparton's employees to the Elbit Systems of America family. Acquiring Sparton, one of the primary American suppliers of sonobuoys, as well as other undersea warfare products, provides us with another significant franchise and an expansion of our business with the U.S. Navy and within the U.S.," said Raanan Horowitz, President & CEO of Elbit Systems of America. "Sparton has been and will continue to be led by a strong and capable management team, and has a good reputation with the U.S. Navy customer. I believe this acquisition will have a positive impact on our growth in both the near and long-term as we continue to invest in Sparton and work to expand its business portfolio and capabilities."
"Demand for our undersea warfare products is increasing as a result of a heightened threat environment in both the Indo-Pacific and Atlantic," said Bill Toti, President of Sparton De Leon Springs LLC ("Sparton De Leon Springs"), an Elbit Systems of America company. "With Elbit Systems of America's support, we will continue to be well positioned to capitalize on growing opportunities in the undersea environment with our leading technology and distinctive capabilities."
As part the acquisition, Elbit Systems of America has established an independent U.S. Proxy Board to oversee all of Sparton De Leon Springs' Undersea business activities, allowing it to exclusively focus on higher sensitivity solutions and programs for U.S. customers. The independent Sparton De Leon Springs' Proxy Board members are the Honorable Kenneth J. Krieg, Mr. Brett B. Lambert, and Admiral Timothy J. Keating, USN (Ret.).
Sparton's Aydin Displays and Stealth divisions will operate as part of Elbit Systems of America's existing security structure. "Combining their superior technology and products with Elbit Systems of America's Airborne Solutions business unit will generate additional capabilities for our customers," Mr. Horowitz said.
Elbit Systems of America operates under a Special Security Agreement with the U.S. Department of Defense that grants the company full rights, privileges, and responsibilities to provide advanced technology for U.S. national security needs. "Elbit Systems of America enjoys a decades-long record of performance supporting mission critical programs for the U.S. government, and an outstanding record of superior security and trust." Mr. Horowitz added.
About Elbit Systems of America, LLC
Elbit Systems of America, headquartered in Fort Worth, Texas, is a leading provider of high-performance products, system solutions, and support services focusing on the defense, homeland security, law enforcement, commercial aviation, and medical instrumentation markets. With facilities throughout the U.S., Elbit Systems of America is dedicated to supporting those who contribute daily to the safety and security of the United States. Elbit Systems of America is wholly owned by Elbit Systems Ltd. (NASDAQ: ESLT and TASE: ESLT), a global high technology company engaged in a wide range of programs for innovative defense and commercial applications. For additional information, visit: www.ElbitAmerica.com or follow us on Twitter, LinkedIn and Instagram.
About Sparton De Leon Springs, LLC
Sparton designs, develops, and produces proprietary products for domestic and foreign defense needs. The company is a world leader in the design, development, testing and production of complex maritime electronic mechanical systems, including sonobuoys in support of Anti-Submarine Warfare, submarine deployed products supporting Undersea Warfare, and depth-rated encapsulated systems to support Subsea and Seabed Warfare. Sparton's Web site may be accessed at www.sparton.com.
About Elbit Systems
Elbit Systems Ltd. is an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned aircraft systems, advanced electro-optics, electro-optic space systems, EW suites, signal intelligence systems, data links and communications systems, radios, cyber-based systems and munitions. The Company also focuses on the upgrading of existing platforms, developing new technologies for defense, homeland security and commercial applications and providing a range of support services, including training and simulation systems. For additional information, visit: https://elbitsystems.com/, follow us on Twitter or visit our official Facebook, YouTube and LinkedIn Channels.
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Forward Looking Statement
This press release may contain forward–looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current facts. Forward-looking statements are based on management's current expectations, estimates, projections and assumptions about future events. Forward–looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions about the Company, which are difficult to predict, including projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business. Therefore, actual future results, performance and trends may differ materially from these forward–looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others; changes in global health and macro-economic conditions; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; changes in the competitive environment; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward–looking statements speak only as of the date of this release. Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company does not undertake to update its forward-looking statements.
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greg.caires@elbitsystems-us.com
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SOURCE Elbit Systems of America, LLC
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