Sparton Corporation and Ultra Electronics USSI Joint Venture (ERAPSCO) Awarded $28.4m for U.S. Navy Sonobuoy Contracts

SCHAUMBURG, Ill. & COLUMBIA CITY, Ind.–(BUSINESS WIRE)–Mar. 6, 2018– Sparton Corporation (NYSE:SPA) and Ultra Electronics Holdings plc (ULE) announce the award of subcontracts valued at $28.4 million to their ERAPSCO joint venture, for the manufacture of sonobuoys for the United States Navy. The award is a GFY18 ERAPSCO Indefinite Delivery Indefinite Quantity (IDIQ) contract release for sonobuoy requirements under ERAPSCO’s five year contract. ERAPSCO will provide production subcontracts in the amount of $17.2 million and $11.2 million to Ultra Electronics USSI and Sparton De Leon Springs, LLC respectively. Production will take place at Ultra Electronics USSI’s Columbia City, IN facility and Sparton’s De Leon Springs, FL facility and is expected to be completed by December 2019.

“Undersea warfare is a vital part of the defense of our nation and our allies throughout the world,” said Joe Hartnett, Interim President and Chief Executive Officer of Sparton Corporation. “We are honored that the Navy continues to rely on us to manufacture a product so fundamental to that task.”

“I am pleased that we have secured this important contract that will continue to provide critical sensor capabilities to the U.S. Navy. This contract is a reflection of the increased focus on anti-submarine warfare and the U.S. Navy’s commitment to providing key technology for this important mission,” stated Douglas Caster, Executive Chairman of Ultra Electronics.

Further information about Ultra:

Ultra Electronics is an internationally successful defense, security, transport and energy company with a long, consistent track record of development and growth. The Group manages a portfolio of specialist capabilities generating innovative solutions to customer needs. Ultra applies electronic and software technologies in demanding and critical environments ranging from military applications, through safety-critical devices in aircraft, to nuclear controls and sensor measurement. These capabilities have seen the Group’s highly-differentiated products contributing to a large number of platforms and programs.

Ultra has world-leading positions in many of its specialist capabilities and, as an independent, non-threatening partner, is able to support all of the main prime contractors in its sectors. As a result of such positioning, Ultra’s systems, equipment or services are often mission or safety-critical to the successful operation of the platform to which they contribute. In turn, this mission-criticality secures Ultra’s positions for the long term which underpins the superior financial performance of the Group.

Ultra offers support to its customers through the design, delivery and support phases of a programme. Ultra businesses have a high degree of operational autonomy where the local management teams are empowered to devise and implement competitive strategies that reflect their expertise in their specific niches. The Group has a small head office and executive team that provide to the individual businesses the same agile, responsive support that they provide to customers as well as formulating Ultra’s overarching, corporate strategy

Across the Group’s three divisions, Ultra operates in the following eight market segments:

  • Aerospace
  • Land
  • Communications
  • Maritime
  • C2ISR
  • Nuclear
  • Infrastructure
  • Underwater Warfare

About Sparton Corporation

Sparton Corporation (NYSE:SPA), now in its 118th 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 & Biotechnology, Military & Aerospace and Industrial & Commercial. Headquartered in Schaumburg, Illinois, Sparton currently has thirteen manufacturing locations and engineering design centers 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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20180306005361/en/

Source: Sparton Corporation

Enquiries for Ultra Electronics:

Douglas Caster, Executive Chairman, 02088134307
Amitabh Sharma, Group Finance Director
Susan McErlain, Corporate Affairs Director, 07836522722
James White, MHP Communications, 02031288756
www.ultra-electronics.com
or

Contact Information for Sparton:

Investors:
Institutional Marketing Services (IMS)
John Nesbett/Jennifer Belodeau, 203-972-9200
jnesbett@institutionalms.com
or
Company:
Sparton Corporation
Joseph McCormack, 847-762-5812
jmccormack@sparton.com