Cerberus Announces Sale of Sparton to Elbit Systems of America
December 23, 2020 | Sparton Corp.Estimated reading time: 2 minutes
Cerberus Capital Management, L.P., a global leader in alternative investing, has announced that one of its affiliates has signed a definitive agreement to sell Sparton Corporation to Elbit Systems of America, LLC.
Headquartered in De Leon Springs, Florida, Sparton is a leading defense supplier, providing a range of advanced proprietary products for domestic and foreign defense, and commercial needs. With decades of experience, Sparton has become the partner of choice to domestic and allied governments, as well as leading defense contractors.
Based in Fort Worth, Texas, Elbit Systems of America is a provider of high-performance products, system solutions, and support services to customers in the defense, homeland security, law enforcement, commercial aviation, and medical instrumentation markets.
“In partnership with Cerberus, we have taken significant steps to strengthen our platform and expand our capabilities,” said Bill Toti, chief executive officer of Sparton. “As we begin our next chapter of growth, we look forward to the strategic combination with Elbit Systems of America and leveraging our combined expertise to further elevate Sparton’s market-leading position. Together, we will be able to deepen our relationships and deliver innovative solutions to meet our customers’ needs.”
Dev Kapadia, senior managing director of Cerberus, added, “We are proud of all that we have accomplished together with Sparton, including the transformative separation of its two business segments. Now, as a pure-play defense supplier, Sparton is well-positioned to build on its strong foundation and drive the platform’s long-term growth. We are pleased that Sparton has found a strategic partner in the next phase of its journey and wish Bill and the entire Sparton team continued success.”
Cerberus acquired Sparton in 2019, and since that time, has partnered with the company to execute on several operational and strategic initiatives, including the recent separation of its defense products and contract manufacturing segments. The separation enabled each business, which operated in distinct industries with tailored strategies, to focus on its core strengths and respective opportunities. Following the divesture of the contract manufacturing segment, Sparton became a standalone, pure-play defense supplier, well-positioned to build on its track record of providing innovative products to the U.S. Navy, allied governments, and leading defense contractors.
The transaction will require customary closing conditions, including receipt of regulatory approvals.
Moelis & Company LLC and Evercore served as the financial advisors and Kirkland & Ellis LLP served as the legal advisor to Sparton. Covington & Burling LLP served as the legal advisor to Elbit Systems of America.
Suggested Items
Saab Launches New Initiative to Shape the Future of Defense and Security
04/24/2024 | SaabSaab announces the launch of Skapa by Saab, a new initiative to accelerate the development and deployment of cutting-edge technologies and solutions.
Alternative Manufacturing Inc. Awarded QML Requalification to IPC J-STD-001 and IPC-A-610
04/24/2024 | IPCIPC's Validation Services Program has awarded an IPC J-STD-001 and IPC-A-610 Qualified Manufacturers Listing (QML) requalification to Alternative Manufacturing Inc (AMI).
AI Demand Drives Rapid Growth in QLC Enterprise SSD Shipments for 2024
04/23/2024 | TrendForceNorth American customers are increasing their orders for storage products as energy efficiency becomes a key priority for AI inference servers. This, in turn, is driving up demand for QLC enterprise SSDs.
Septentrio Expands UAV Ecosystem for Reliable GNSS Positioning
04/22/2024 | SeptentrioSeptentrio, a leader in high-precision GNSS* positioning solutions, is closely working with several major drone solutions providers including 3DR, Holybro, ARK Electronics and Systork, which is resulting in various new products that allow easier prototyping or integration of the mosaic™ GNSS receiver into UAVs.
AIM to Highlight NC259FPA Ultrafine No Clean Solder Paste at SMTA Wisconsin Expo & Tech Forum
04/18/2024 | AIMAIM Solder, a leading global manufacturer of solder assembly materials for the electronics industry, is pleased to announce its participation in the upcoming SMTA Wisconsin Expo & Tech Forum taking place on May 7 at the Four Points by Sheraton | Milwaukee Airport, in Milwaukee, Wisconsin.