For Immediate Release
• Acquisition Expected to Provide $18 Million in Annual Revenue• Adds Engineered Product Content of Enhanced Flat Panel Display and Touch-Screen Solutions
SCHAUMBURG, Ill.–(BUSINESS WIRE)–Sep. 3, 2013— Sparton Corporation (NYSE:SPA) announces that on August 30, 2013, its wholly owned subsidiary, Sparton Aydin, LLC completed the transaction to acquire certain assets and liabilities of Aydin Displays, Inc., an $18 million revenue business, in an all-cash transaction.
Aydin Displays, Inc., a subsidiary of Video Display Corp. (NASDAQ:VIDE), located in Birdsboro, Pennsylvania, develops enhanced flat panel display and touch-screen solutions with application-critical performance criteria for the Military & Aerospace and Civil Marine. These products are currently specified in the P8A behind-the-cockpit control center, the command and control centers of many U.S. Navy ships, FAA air traffic control systems, and cockpit command centers for various civil marine applications. Once the transaction is complete, the company will continue to operate as Aydin Displays.
“The addition of Aydin Displays meets one aspect of our growth strategy by providing engineered product content to further enhance our capabilities within the electromechanical value stream as well as providing lead generation opportunities for our contract services business,” stated Cary B. Wood, president and chief executive officer of Sparton. “Additionally, Aydin’s products are an integral part of the P8A program, as are our sonobuoy products. We also believe we will be able to enhance the solutions selling approach of both Aydin Displays and our Defense & Security Systems business segment to the Department of Defense and other prime defense contractors, as well as key customers located across the globe.”
The transaction was funded through Sparton’s existing cash balances and borrowings under the credit facility currently in place with BMO Harris Bank.
The Company will be conducting a conference call on its fiscal 2013 fourth quarter and full year financial results on Wednesday, September 4, 2013 and will provide additional information at that time.
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, Military & Aerospace, and Industrial & Instrumentation. Headquartered in Schaumburg, IL, Sparton currently has five manufacturing locations worldwide. Sparton’s Web site may be accessed at www.sparton.com.
About Aydin Displays, Inc.
Aydin Displays is a leading provider in display manufacturing technology, servicing the industrial, military and air traffic control industries. Aydin offers a variety of industrial displays, rugged Military/COTS Flat Panel Displays, Military Panel PC Workstations, and Air Traffic Control Displays ranging in size from 6.4″ to 57″ now with the added capability of TEMPEST and TEMPEST certification. For more information, visit Aydin’s web site at www.aydindisplays.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.
Analyst ContactDon Pearson
Office: (847) 762-5812
Media ContactMike Osborne
Office: (847) 762-5814
Investor ContactJohn Nesbett/Jennifer Belodeau
Institutional Marketing Services
Office: (203) 972-9200