Sparton Corporation Sells its Manufacturing & Design Services Business to One Equity Partners
June 29, 2020 | Sparton Corp.Estimated reading time: 2 minutes
Sparton Corporation, a leading provider of engineered products for the defense industry, has entered into a definitive agreement to sell its contract manufacturing unit, Manufacturing & Design Services, to One Equity Partners, a middle market private equity firm.
Following the divesture of the MDS segment, which provides complex electromechanical solutions for a range of industries, Sparton will focus exclusively on its industry-leading engineered defense products business, Engineered Components & Products. Sparton will become a pure-play defense supplier and will continue to design, develop, and produce proprietary engineered products for domestic and foreign defense as well as commercial needs. With decades of experience in developing engineered products, Sparton has become the partner of choice to the U.S. Navy, allied governments, and leading defense contractors. Sparton will remain a partner in its ERAPSCO joint venture and Bill Toti, currently President & Chief Executive Officer of Sparton ECP, will continue to lead the business under the Sparton brand as Chief Executive Officer of Sparton upon closing.
“This is an important milestone for both our defense products and contract manufacturing businesses, which have operated in separate industries with distinct long-term strategies,” said Toti. “Now, these leading platforms will be able to focus on their respective core strengths and capitalize on opportunities specific to each business. We wish our MDS colleagues all the best and look forward to watching their continued success in their next chapter.”
MDS is well-recognized for its historically advanced engineering, design, and manufacture of highly complex electronic and electromechanical devices, including sophisticated printed circuit card assemblies, sub-assemblies, full product assemblies, and cable/wire harnesses. MDS, which nearly doubled its offshore manufacturing capabilities in Vietnam recently and operates nine plants in the United States, has strong multi-year customer relationships with many of the world’s blue-chip OEMs across the aerospace, medical, and industrial markets.
Paul Fraipont, President & Chief Executive Officer of Sparton MDS, added, “We are extremely proud of the robust manufacturing platform we have built over the decades and are excited about our opportunities ahead. MDS has become a trusted partner to many leading businesses around the world, with a strong reputation for delivering high-quality, complex manufacturing solutions. Today’s announcement underscores the strength of our MDS business and our unwavering commitment to providing best-in-class services. We look forward to our partnership with OEP and leveraging their industry expertise as we reach new heights.”
“We look forward to supporting the very talented team at MDS as they continue to meet the strong global demand for advanced manufacturing solutions, while helping them to identify new organic and strategic acquisition opportunities that will drive growth in North America and worldwide,” said Chip Schorr, Senior Managing Director at OEP. “MDS is a fantastic platform, and this transaction is well aligned with OEP’s historic experience in acquiring non-core but high growth potential businesses through corporate carve-outs that position them for their next chapter of growth as an independent company.”
Effective upon closing, the standalone MDS business will rebrand as “Spartronics” and Fraipont will transition his same role and responsibilities to the new Spartronics business.
Toti concluded, “Operating our engineered defense products business as Sparton, a standalone entity, we will be able to focus exclusively on providing innovative products and executing on opportunities that drive our platform’s growth. We are excited to build upon our strong foundation and accelerate our ability to meet the critical needs of our customers in the United States and globally.”
Suggested Items
Real Time with… IPC APEX EXPO 2024: Tools, Training, and Trends in Manufacturing Engineering
04/25/2024 | Real Time with...IPC APEX EXPOGuest Editor Kelly Dack and Product Specialist Erik Bateham of Polar Instruments discuss Polar's latest technology, including their role in aiding manufacturing engineers. They highlight the advanced capabilities of Polar's tools and the critical role of signal integrity analysis, as well as the importance of accurate modeling in board manufacturing. Polar's unique training approach and demonstration contact details are also explored.
TTM Celebrates the Grand Opening of Its First Manufacturing Facility in Penang
04/25/2024 | TTM Technologies, Inc.TTM Technologies, Inc., a leading global manufacturer of technology solutions including mission systems, radio frequency (RF) components and RF microwave/microelectronic assemblies, and quick-turn and technologically advanced printed circuit boards (PCBs), officially opened its first manufacturing plant in Penang, Malaysia with an investment of USD200 million (approximately RM958 million).
Listen Up! The Intricacies of PCB Drilling Detailed in New Podcast Episode
04/25/2024 | I-Connect007In episode 5 of the podcast series, On the Line With: Designing for Reality, Nolan Johnson and Matt Stevenson continue down the manufacturing process, this time focusing on the post-lamination drilling process for PCBs. Matt and Nolan delve into the intricacies of the PCB drilling process, highlighting the importance of hole quality, drill parameters, and design optimization to ensure smooth manufacturing. The conversation covers topics such as drill bit sizes, aspect ratios, vias, challenges in drilling, and ways to enhance efficiency in the drilling department.
Elevating PCB Design Engineering With IPC Programs
04/24/2024 | Cory Blaylock, IPCIn a monumental stride for the electronics manufacturing industry, IPC has successfully championed the recognition of the PCB Design Engineer as an official occupation by the U.S. Department of Labor (DOL). This pivotal achievement not only underscores the critical role of PCB design engineers within the technology landscape, but also marks the beginning of a transformative journey toward nurturing a robust, skilled workforce ready to propel our industry into the future.
Fujitsu, METRON Collaborate to Drive ESG Success
04/24/2024 | JCN NewswireFujitsu Limited and METRON SAS, a French cleantech company specializing in energy management solutions for industrial decarbonization, today announced a strategic initiative to contribute to the realization of carbon neutrality in the manufacturing industry.