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TransDigm Completes Acquisition of Servotronics

In a significant development in the aerospace sector, TransDigm Group Incorporated (NYSE: TDG) announced the finalization of its acquisition of Servotronics, Inc. (NYSE American: SVT) on July 1, 2025. This acquisition marks a strategic expansion for TransDigm, a leading designer and supplier of aerospace components.

The tender offer for Servotronics' shares was initiated at a cash purchase price of $47.00 per share, a move that showcased TransDigm's commitment to enhancing its portfolio of engineered components for aircraft. The offer was set to expire at 11:59 PM New York City time on June 30, 2025. By the end of this period, 2,228,197 shares, accounting for approximately 87.09% of Servotronics' outstanding stock, were validly tendered into the offer.

TransDigm’s acquisition strategy allowed it to accept the shares tendered without requiring a vote from Servotronics' stockholders, as stipulated by Section 251(h) of the Delaware General Corporation Law. This legal maneuver facilitated an accelerated merger process, culminating in the successful integration of the two companies on the day of acquisition.

As part of the transaction, any outstanding shares of Servotronics' common stock that were not tendered will be converted into the newly established value of $47.00 per share, ensuring that existing shareholders receive equitable treatment. Following the completion of the transaction, Servotronics’ stock will cease trading on the NYSE American, and delisting actions are expected to be filed shortly.

Profile of TransDigm and Servotronics

TransDigm Group has established itself as a dominant player in the aerospace industry, specializing in highly-engineered components crucial for both commercial and military aircraft. Its extensive product line includes actuators, ignition systems, specialized pumps, and much more, which are critical to ensuring the safety and efficiency of aviation equipment.

On the other hand, Servotronics is renowned for its design and manufacturing of servo controls and components utilized in various high-demand applications including aircraft, jet engines, and defense technologies. The operational capabilities of Servotronics, primarily based in Elma and Franklinville, New York, align well with TransDigm's goal of creating a comprehensive suite of aerospace components.

The acquisition not only expands TransDigm’s market reach but also enhances its ability to offer a more complete range of solutions to its customers in the aerospace domain. The integration of Servotronics' innovative technologies and skilled workforce is expected to drive future growth and operational efficiencies.

Legal and financial advisors played a pivotal role in this acquisition, with BakerHostetler LLP serving as legal counsel for TransDigm, while Houlihan Lokey acted as financial advisor for the deal. Bond Schoeneck & King provided legal counsel to Servotronics, ensuring that all regulatory and procedural requirements were met throughout the merger process.

Looking Ahead

As the aerospace industry continues to evolve, mergers and acquisitions like this one are becoming increasingly commonplace. With growing demand for advanced aviation technologies and components, TransDigm's acquisition of Servotronics positions it strategically to capitalize on future growth opportunities and enhance its service offerings.

In conclusion, the successful completion of this acquisition is a testament to TransDigm's proactive approach in refining its portfolio and fortifying its position as a leader in the aerospace component market. As both companies merge their strengths, stakeholders in the aerospace sector will be closely watching the operational synergies that emerge from this significant partnership.