U.K firm acquires Sparton Corp. for $235 million
Schaumburg-based Sparton Corp. will be acquired by Ultra Electronics Holdings plc for $234.8 million, the companies announced Friday.
Ultra, a global defense, security, transport and energy company based in Middlesex, England, will pay $23.50 per share in cash for Sparton.
Sparton is a manufacturer and supplier of electromechanical devices that are used by a number of industries, from sonobuoys used to track submarines for the military to power and sensing systems for industrial and medical customers. The company has 13 manufacturing locations and engineering design centers around the world.
The two companies had been in a 50/50 partnership for the past 10 years through a joint venture that develops, manufactures and supports sonobuoys supplied to the U.S. Department of Defense. Ultra said the acquisition will strengthen its relationship with the Defense Department. Sonobuoys use sound to detect underwater objects.
Ultra would look to sell off Sparton's Manufacturing and Design Services division by the end of the first quarter of 2018, noting it was "noncore" to the company's strategy.
"The combination of these two enterprises represents a unique opportunity to create a more robust supplier to the U.S. DoD while simultaneously positioning the combined businesses to utilize assets in a much more efficient manner," said Sparton Interim President and CEO Joseph J. Hartnett.
Sparton's board of directors unanimously approved the acquisition. The acquisition is expected to close Jan. 1, 2018.