Sparton Acquires Argotec Sonar Transducer ProductsDecember 22, 2014
For Immediate Release
SCHAUMBURG, Ill.–(BUSINESS WIRE)–December 22, 2014–Sparton Corporation (NYSE:SPA) announced that its wholly owned subsidiary, Sparton DeLeon Springs, LLC completed the acquisition of certain assets of Argotec, Inc. on December 8, 2014 in an all-cash transaction.
Argotec, located in Longwood, FL, develops and manufactures sonar transducer products and components for the U.S. Navy, and provides aftermarket servicing. The products, primarily hydrophones and projectors, are used in test equipment, environmental sensor arrays, and various military and commercial sonar applications. These products will be consolidated into the Navigation & Exploration (NavEx) segment of Engineering Components and Products (ECP) located at Sparton’s DeLeon Springs, FL facility.
“Although not material in size, Argotec brings valuable intellectual property to our NavEx segment, as well as a consistent single-sourced revenue stream for key military end applications, further enhancing our growth opportunities,” stated Cary B. Wood, president and chief executive officer of Sparton. “As we enhance our current product offerings with these newly acquired products and components, we will explore new engineering development opportunities within the U.S. Navy, foreign naval operations, and prime defense contractors.”
“We are pleased to consolidate Argotec’s products into the NavEx business segment. The products we are acquiring have been a mainstay for a number of key niche military applications. The intellectual property, in conjunction with Sparton’s current acoustic transducer expertise, will undoubtedly provide our customers with new and innovative solutions in the future,” commented Jim Lackemacher, group vice president of Engineered Components & Products. “In the coming weeks, we will be transitioning Argotec’s customers to our DeLeon Springs facility in an orderly and seamless manner, using tools such as Sparton’s New Product Introduction (NPI) and Advanced Product Quality Planning (APQP) processes.”
“This tuck-in acquisition, the second this month, furthers our strategy to maximize existing assets and enhances our portfolio of proprietary products. The acquisition is expected to be accretive to earnings within the next six months, following the completion of transitioning activities,” Mr. Wood concluded.
About Sparton Corporation
Sparton Corporation (NYSE:SPA), now in its 115th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service and refurbishment. The primary markets served are Medical & Biotechnology, Military & Aerospace, and Industrial & Commercial. Headquartered in Schaumburg, IL, Sparton currently has nine manufacturing locations and four engineering design centers worldwide. Sparton’s Web site may be accessed at www.sparton.com.
Safe Harbor and Fair Disclosure Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: To the extent any statements made in this release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties, including the difficulty of predicting future results, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in Sparton’s filings with the Securities and Exchange Commission (SEC). The matters discussed in this press release may also involve risks and uncertainties concerning Sparton’s services described in Sparton’s filings with the SEC. In particular, see the risk factors described in Sparton’s most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.
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