TransDigm Group and Servotronics, Inc. Announce Acquisition Agreement
TransDigm Group (NYSE: TDG) has announced a definitive merger agreement to acquire Servotronics (NYSE American: SVT) for $38.50 per share in cash, valuing the transaction at approximately $110 million. The offer represents a significant 274% premium over Servotronics' closing price on May 16, 2025.
Servotronics, headquartered in Elma, New York, is a leading manufacturer of servo controls and advanced technology components for aerospace and defense applications. The company generates approximately $45 million in annual revenue, with nearly 80% of its business serving commercial aerospace through proprietary products. The acquisition will be funded through TransDigm's cash on hand and is expected to commence with a tender offer by June 9, 2025.
TransDigm Group (NYSE: TDG) ha annunciato un accordo definitivo di fusione per acquisire Servotronics (NYSE American: SVT) a 38,50 dollari per azione in contanti, valutando l'operazione a circa 110 milioni di dollari. L'offerta rappresenta un significativo premio del 274% rispetto al prezzo di chiusura di Servotronics del 16 maggio 2025.
Servotronics, con sede a Elma, New York, è un produttore leader di controlli servo e componenti tecnologici avanzati per applicazioni aerospaziali e di difesa. L'azienda genera circa 45 milioni di dollari di ricavi annui, con quasi l'80% del suo business rivolto all'aerospazio commerciale tramite prodotti proprietari. L'acquisizione sarà finanziata con la liquidità disponibile di TransDigm e si prevede che inizierà con un'offerta pubblica di acquisto entro il 9 giugno 2025.
TransDigm Group (NYSE: TDG) ha anunciado un acuerdo definitivo de fusión para adquirir Servotronics (NYSE American: SVT) por 38,50 dólares por acción en efectivo, valorando la transacción en aproximadamente 110 millones de dólares. La oferta representa una prima significativa del 274% sobre el precio de cierre de Servotronics el 16 de mayo de 2025.
Servotronics, con sede en Elma, Nueva York, es un fabricante líder de controles servo y componentes tecnológicos avanzados para aplicaciones aeroespaciales y de defensa. La compañía genera aproximadamente 45 millones de dólares en ingresos anuales, con casi el 80% de su negocio dirigido a la industria aeroespacial comercial mediante productos propios. La adquisición será financiada con la liquidez disponible de TransDigm y se espera que comience con una oferta pública de adquisición antes del 9 de junio de 2025.
TransDigm Group (NYSE: TDG)는 Servotronics (NYSE American: SVT)를 주당 38.50달러 현금에 인수하는 최종 합병 계약을 발표했으며, 거래 가치는 약 1억 1천만 달러로 평가됩니다. 이번 제안은 2025년 5월 16일 Servotronics 종가 대비 274%의 프리미엄을 의미합니다.
뉴욕 엘마에 본사를 둔 Servotronics는 항공우주 및 방위 산업용 서보 제어기와 첨단 기술 부품의 선도적인 제조업체입니다. 연간 매출은 약 4,500만 달러이며, 전체 매출의 거의 80%가 독자적인 제품을 통해 상업용 항공우주 분야에 공급됩니다. 이번 인수는 TransDigm의 보유 현금으로 자금 조달되며, 2025년 6월 9일까지 공개 매수 제안으로 시작될 예정입니다.
TransDigm Group (NYSE : TDG) a annoncé un accord définitif de fusion pour acquérir Servotronics (NYSE American : SVT) au prix de 38,50 $ par action en espèces, valorisant la transaction à environ 110 millions de dollars. L'offre représente une prime significative de 274 % par rapport au cours de clôture de Servotronics le 16 mai 2025.
Servotronics, dont le siège est à Elma, New York, est un fabricant de premier plan de commandes servo et de composants technologiques avancés pour les applications aérospatiales et de défense. L'entreprise génère environ 45 millions de dollars de chiffre d'affaires annuel, avec près de 80 % de son activité dédiée à l'aérospatiale commerciale via des produits propriétaires. L'acquisition sera financée par la trésorerie disponible de TransDigm et devrait débuter par une offre publique d'achat d'ici le 9 juin 2025.
TransDigm Group (NYSE: TDG) hat eine endgültige Fusionsvereinbarung zur Übernahme von Servotronics (NYSE American: SVT) für 38,50 USD pro Aktie in bar bekannt gegeben, womit die Transaktion auf etwa 110 Millionen USD bewertet wird. Das Angebot stellt eine erhebliche 274%ige Prämie gegenüber dem Schlusskurs von Servotronics am 16. Mai 2025 dar.
Servotronics mit Hauptsitz in Elma, New York, ist ein führender Hersteller von Servosteuerungen und fortschrittlichen Technologiebestandteilen für Luft- und Raumfahrt- sowie Verteidigungsanwendungen. Das Unternehmen erzielt einen Jahresumsatz von etwa 45 Millionen USD, wobei fast 80% des Geschäfts mit proprietären Produkten im kommerziellen Luftfahrtbereich erwirtschaftet werden. Die Übernahme wird aus TransDigms vorhandenen Barmitteln finanziert und soll mit einem Übernahmeangebot bis zum 9. Juni 2025 beginnen.
- 274% premium offered to Servotronics shareholders, providing immediate value
- 80% of Servotronics' business serves commercial aerospace with proprietary products
- Strong aftermarket exposure aligns with TransDigm's business strategy
- Acquisition requires no external financing, funded with cash on hand
- Unanimous approval from Servotronics' Board of Directors
- Relatively small revenue contribution from Servotronics ($45M) compared to transaction value ($110M)
- Integration costs and potential operational challenges during transition
Insights
TransDigm's $110M acquisition of Servotronics at 274% premium strengthens aerospace components portfolio with high-margin, aftermarket-focused servo valve technology.
This acquisition represents a strategically aligned transaction where TransDigm is paying a substantial
The acquisition fits perfectly into TransDigm's business model for several reasons. First, Servotronics generates approximately
The transaction structure as a tender offer followed by a merger is standard for public company acquisitions and appears straightforward with no financing contingencies. TransDigm is funding the purchase with existing cash, indicating strong liquidity position. With Servotronics' 275 employees and specialized manufacturing operations in Western New York, this acquisition adds specialized servo valve technology to TransDigm's already extensive portfolio of aerospace components.
What's particularly notable is the implied valuation multiple - at approximately 2.4x revenue (
Under the terms of the agreement, a subsidiary of TransDigm will commence a tender offer to acquire all the outstanding shares of Servotronics for
Following the purchase of shares through the tender offer, TransDigm will complete the acquisition of Servotronics by acquiring all remaining shares not acquired in the offer through a merger at the same price as the tender offer. The acquisition will be funded with TransDigm's cash on hand and is not subject to any financing conditions. The merger agreement was unanimously approved by the Board of Directors of Servotronics.
Servotronics, headquartered in
Kevin Stein, TransDigm's President and Chief Executive Officer stated, "We are excited to have an agreement to acquire Servotronics and welcome them to TransDigm. Servotronics' highly engineered, proprietary products with significant aftermarket exposure fit well with our long-standing strategy. Nearly
Bill Farrell Jr., Servotronics' Chief Executive Officer, added, "We believe Servotronics will be an excellent addition to the TransDigm portfolio of companies, as our products, business model, strategy and focus are closely aligned. Being part of a larger aerospace company will allow for further growth opportunities and provide resources for Servotronics to continue developing the highly engineered, proprietary products that we are known for today. We believe this transaction delivers immediate and certain value for Servotronics' shareholders and positions Servotronics well for the future. We are proud of our history and accomplishments and look forward to our long future together with TransDigm."
Under the terms of the merger agreement, the parties anticipate that TransDigm will commence a cash tender offer for all of the outstanding shares of Servotronics on or before June 9, 2025. TransDigm's obligation to accept and purchase Servotronics common stock tendered pursuant to the tender offer will be subject to customary closing conditions, including the valid tender of a majority of the outstanding shares of Servotronics common stock.
Advisors
Baker & Hostetler LLP is acting as legal counsel to TransDigm. Houlihan Lokey is acting as financial advisor and Bond Schoeneck & King is acting as legal counsel to Servotronics.
About TransDigm Group
TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, cargo loading, handling and delivery systems and specialized flight, wind tunnel and jet engine testing services and equipment, electronic components used in the generation, amplification, transmission and reception of microwave signals, and complex testing and instrumentation solutions.
About Servotronics, Inc.
Servotronics designs, develops, and manufactures servo controls and other components for various commercial and government applications including aircraft, jet engines, missiles, manufacturing equipment and other aerospace applications at its operating facilities in Elma and Franklinville,
IMPORTANT INFORMATION ABOUT THE TENDER OFFER
This communication is not an offer to purchase or a solicitation of an offer to sell securities of Servotronics. The planned tender offer by TransDigm and its subsidiaries TransDigm Inc. and TDG Rise Merger Sub, Inc. ("Merger Sub") for all of the outstanding shares of common stock of Servotronics has not been commenced. On commencement of the tender offer, Merger Sub will mail to Servotronics stockholders an offer to purchase and related materials and Servotronics will thereafter mail to its stockholders a solicitation/recommendation statement with respect to the tender offer. TransDigm, TransDigm Inc. Merger Sub will file the offer to purchase with the Securities and Exchange Commission (the "SEC") on Schedule TO, and Servotronics will file its solicitation/recommendation statement with the SEC on Schedule 14D-9. SERVOTRONICS STOCKHOLDERS ARE URGED TO READ THESE MATERIALS CAREFULLY WHEN THEY BECOME AVAILABLE, SINCE THEY WILL CONTAIN IMPORTANT INFORMATION, INCLUDING TERMS AND CONDITIONS OF THE OFFER. Servotronics stockholders may obtain a free copy of these materials (when they become available) and other documents filed by TransDigm, TransDigm Inc. and Merger Sub or Servotronics with the SEC at the website maintained by the SEC at www.sec.gov. These materials also may be obtained (when they become available) for free by contacting the information agent for the tender offer (when one is selected).
Forward-Looking Statements
Some of the statements in this communication constitute forward-looking statements. These statements are related to the expected timing, completion and effects of the proposed transaction or other future events, and may be identified by terminology such as "may," "will," "should," "expects," "scheduled," "plans," "intends," "anticipates," "believes," "estimates," "potential," or "continue," or the negative of such terms, or other comparable terminology. These statements are only predictions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Servotronics and TransDigm, TransDigm Inc. and Merger Sub might not be able to complete the proposed transaction on terms herein, other acceptable terms or at all because of a failure to satisfy closing conditions, or other factors. Except as required by law, TransDigm, TransDigm Inc., Merger Sub and Servotronics undertake no obligation to revise or update the forward-looking statements contained in this press release.
Media / Investor Contacts: | |
TransDigm Group | Servotronics, Inc. |
Investor Relations | Investor Relations |
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SOURCE TransDigm Group Inc.; Servotronics, Inc.
FAQ
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