For Immediate Release
SCHAUMBURG, Ill.–(BUSINESS WIRE)–December 17, 2014–Sparton Corporation (NYSE:SPA) announced that its wholly owned subsidiary, Sparton IED, LLC completed the acquisition of certain assets of Industrial Electronic Devices, Inc. on December 3, 2014 in an all-cash transaction.
IED, located in Flemington, NJ, designs and manufactures a full line of ruggedized displays for the Industrial and Marine markets. Their catalog spans over 600 standard, semi-custom, and custom configurations, incorporating some of the most advanced flat panel displays and touch screen technology available. These product lines will be consolidated into the Aydin Displays facility, located in Birdsboro, PA.
“Although not material in size, the addition of IED meets the criteria of our growth strategy by growing our ruggedized electronics platform with additional ruggedized display and touch screen offerings in the harsh and demanding sectors of the Industrial and Marine markets, diversifying our customer base, and increasing the utilization of our existing assets,” stated Cary B. Wood, president and chief executive officer of Sparton. “Additionally, IED brings solid, long term customer relationships that will benefit from Sparton’s expanded list of service offerings.”
“We look forward to having IED move into our Aydin Displays location and begin contributing to quickly enhancing our market position in both the Industrial and Marine markets,” commented Art Mengel, general manager of Aydin Displays. “In the coming months we will be transitioning IED’s customers to Birdsboro with an orderly and seamless approach, using contemporary tools such as Sparton’s New Product Introduction (NPI) and Advanced Product Quality Planning (APQP) processes as well as the Sparton Production System.”
“We are pleased to join the Sparton team,” stated Jerry Kalajian, owner of IED. “With the additional support and enhanced capabilities Sparton has to offer, we expect to be able to fulfill our customers’ needs in a more timely and effective manner.”
Mr. Kalajian will join Sparton to oversee the transition and integration of IED’s customers to the Birdsboro facility, to maintain relationships with their current customers, and to expand current and future customer accounts.
“This tuck-in acquisition is a great example of our strategy to maximize existing assets while expanding our ruggedized electronics product platform. Since we will not add significant fixed overhead in Birdsboro related to this transaction, we expect IED’s revenue to enhance the Company’s Engineered Components & Products segment EBITDA. The acquisition is expected to increase Aydin Displays’ revenue by 15% and be accretive to earnings within the next nine to twelve months, once transitioning activities are completed,” 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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