Sparton Corporation and Ultra Electronics USSI Joint Venture (ERAPSCO) Awarded $166 Million for U.S. Navy Sonobuoy ContractAugust 6, 2014
For Immediate Release
SCHAUMBURG, Ill.–(BUSINESS WIRE)–Aug. 6, 2014–Sparton Corporation (NYSE:SPA) announces that its Joint Venture with Ultra Electronics Holdings plc (ULE), ERAPSCO, has been awarded a contract valued at $166 million for the manufacture of sonobuoys for the United States Navy. The contract provides the base year award of a five year Indefinite Delivery Indefinite Quantity (IDIQ) contract that has a maximum value of $810 million. ERAPSCO will provide production subcontracts in the amount of $90.5 million and $75.5 million to Sparton DeLeon Springs, LLC and Ultra Electronics USSI respectively. Production will take place at Sparton’s DeLeon Springs, FL facility as well as Ultra’s Columbia City, IN facility and is expected to be completed by June 2020.
“We are firmly committed to development of innovative technology and to providing the U.S. Navy with the highest quality products that help further its mission,” stated Cary B. Wood, President and Chief Executive Officer of Sparton.
About Sparton Corporation
Sparton Corporation (NYSE:SPA), now in its 114th 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 eight manufacturing locations and four engineering design centers worldwide. Sparton’s Web site may be accessed at www.sparton.com.
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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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