© mikael damkier dreamstime.com Electronics Production | December 12, 2018
Sparton Corporation to be acquired by Cerberus
Sparton Corporation has entered into a definitive agreement to be acquired by an affiliate of Cerberus Capital Management, L.P., a private equity firm.
Under the terms of the agreement, Cerberus will acquire all outstanding shares of Sparton’s common stock for USD 18.50 per share in cash, which 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,” says Joseph J. Hartnett, Interim President and Chief Executive Officer of Sparton, in a press release. “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,” Mr. Hartnett adds. The transaction, which is subject to the receipt of Sparton shareholder approval and other customary closing conditions, is expected to close in the first calendar quarter of 2019.