TransDigm Group Incorporated announced a definitive merger agreement to acquire Servotronics, Inc. for approximately $110 million in cash. Under the terms, a TransDigm subsidiary will launch a tender offer to acquire all outstanding shares of Servotronics for $38.50 per share in cash.
The cash consideration of $38.50 per share represents a premium of approximately 274% to Servotronics' closing share price on May 16, 2025. Servotronics, headquartered in Elma, New York, is a global designer and manufacturer of highly engineered servo controls and other advanced technology components for aerospace and defense applications.
Servotronics generated approximately $45 million in revenue for its fiscal year ended December 31, 2024, with nearly 80% of its business serving commercial aerospace and almost all revenue from proprietary products. TransDigm's CEO, Kevin Stein, stated that Servotronics' highly engineered, proprietary products with significant aftermarket exposure align well with TransDigm's long-standing strategy, and the acquisition will be funded with cash on hand.
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