#USA #Acquisition #Cleveland #TransDigm #Servotronics

Announcement of Acquisition

On July 1, 2025, TransDigm Group Incorporated (NYSE: TDG), a leading provider of highly engineered aircraft components, announced the successful completion of its acquisition of Servotronics, Inc. (NYSE American: SVT). This strategic move comes after a tender offer that concluded on June 30, 2025, where TransDigm declared a purchase price of $47.00 per share in cash for the outstanding shares of Servotronics.

Tender Offer Success

The tender offer saw an impressive response, with 2,228,197 shares, or approximately 87.09% of Servotronics' common stock, being validly submitted by shareholders. This overwhelming support allowed TransDigm to fulfill the necessary conditions to proceed with the acquisition. Notably, the entire transaction was completed without needing a vote from Servotronics' stockholders, thanks to the provisions of Section 251(h) of Delaware Corporate Law.

Transitioning Forward

As part of the acquisition process, all shares that were not tendered will also be converted to receive the same purchase price as outlined in the tender offer. Furthermore, Servotronics' stock will no longer be traded on the NYSE American, with a delisting notice expected to be filed shortly.

About TransDigm Group

TransDigm Group operates as a global leader in the design and manufacturing of critical aerospace components. Their extensive product range includes mechanical and electro-mechanical actuators, ignition systems, specialized pumps, and valves, among others. This acquisition is expected to enhance TransDigm's already robust portfolio, integrating Servotronics’ advanced product lines that serve varied applications from commercial airlines to military operations.

About Servotronics, Inc.

Servotronics specializes in servo controls and other components required by both commercial and government sectors, which includes serving the aerospace industry. With facilities located in Elma and Franklinville, New York, Servotronics has established a significant footprint in the market, and its integration into TransDigm affirms the expansion of capabilities offered to their clientele.

Advisors Involved

The legal counsel for the acquisition was provided by Baker Hostetler LLP for TransDigm, while financial advice was handled by Houlihan Lokey. Bond Schoeneck & King served as legal advisors for Servotronics, ensuring compliance and due diligence throughout the acquisition process.

Future Outlook

This acquisition positions TransDigm not only to broaden its market reach but also to deepen its technological expertise within the aerospace industry. The merger facilitates enhanced production efficiency and offers a more diversified product range, ultimately benefiting customers both domestically and internationally. As TransDigm continues to evolve, the integration of Servotronics will be pivotal in fostering innovation and advancing aerospace technologies.

In conclusion, the acquisition marks a significant milestone for TransDigm, reinforcing its dedication to delivering high-quality aerospace components and solutions to meet the ever-evolving demands of the aerospace industry.