For Immediate Release
- Acquisition Expected to Provide $18 Million in Annual Revenue
- Adds Electromechanical Controls for the Machine Tool, Analytical Instruments, and Military Industries
SCHAUMBURG, Ill.–(BUSINESS WIRE)–Dec. 12, 2013— Sparton Corporation (NYSE:SPA) announces that its wholly owned subsidiary, Sparton Beckwood, LLC, has entered into a definitive purchase agreement to acquire Beckwood Services, Inc., an $18 million revenue business, in an all-cash transaction.
Beckwood Services is engaged in the contract services business of manufacturing electronic or electro-mechanical controls and electronic assemblies. Their customer profile includes international Fortune 1000 manufacturers of industrial control systems, analytical instruments, measuring and detecting equipment, and military, defense and Homeland Security equipment.
“The addition of Beckwood Services meets aspects of our growth strategy by providing Sparton’s entrance into the Northeast geographic market as well as adding industrial control capabilities that further enhances our offerings within the electromechanical value stream,” stated Cary B. Wood, president and chief executive officer of Sparton. “As Sparton continues to implement its strategic growth plan, we plan to achieve our growth expectations by focusing on new business development, internal product research and development, and complementary and compatible acquisitions. We are pleased to have Beckwood Services join the Sparton family and expect it to be accretive to earnings within the first 12 months.”
The transaction was funded through Sparton’s existing cash balances and borrowings under the credit facility currently in place with BMO Harris Bank.
About Sparton Corporation
Sparton Corporation (NYSE:SPA), now in its 114th 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, Military & Aerospace, and Industrial & Instrumentation. Headquartered in Schaumburg, IL, Sparton currently has five manufacturing locations worldwide. Sparton’s Web site may be accessed at www.sparton.com.
Safe Harbor and Fair Disclosure Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: To the extent any statements made in this release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties, including the difficulty of predicting future results, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in Sparton’s filings with the Securities and Exchange Commission (SEC). The matters discussed in this press release may also involve risks and uncertainties concerning Sparton’s services described in Sparton’s filings with the SEC. In particular, see the risk factors described in Sparton’s most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.
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