SCHAUMBURG, Ill.–(BUSINESS WIRE)–March 17, 2015–Sparton Corporation (NYSE:SPA) announced that its wholly owned subsidiary, Sparton of Canada, Ltd. completed the acquisition of substantially all of the assets of Stealth.com Inc., a $10 million revenue business (Canadian dollars) on March 16, 2015 in an all-cash transaction.
Founded in 1990, Stealth.com, located in Woodbridge, Ontario, is a build-to-order, specialty configurator of high performance ruggedized industrial grade computer systems and peripherals that include mini PCs, rackmount server PCs, portable PCs, and LCD touch screen displays. These products service the Military, Government, Industrial, and Commercial markets.
“The addition of the Stealth.com business meets the criteria of our growth strategy by further expanding our engineered components and products offering in the ruggedized electronics space,” stated Cary B. Wood, president and chief executive officer of Sparton. “Stealth.com complements our existing offerings under Aydin Displays and KEP Marine, allowing us to serve a wider breadth of customers with a greater variety of products and services.”
“We are looking forward to joining Sparton and taking the next step in the evolution of Stealth.com,” commented Ed Boutilier, president of Stealth.com. “We have been impressed by the leadership, their strategies for growth, and the complementary product lines that we will join under Sparton’s Engineered Components & Products (ECP) business unit.”
“Stealth.com marks our fourth acquisition in a market space where we did not have a presence 15 months ago. We have amassed a business in which we expect synergies to benefit our customers, our operations, and our product development. Stealth.com’s revenue is expected to enhance the Company’s Engineered Components & Products segment EBITDA and be accretive to earnings within the next nine to twelve months, once integration activities are completed,” Mr. Wood concluded.
The transaction was funded through Sparton’s borrowings under the credit facility currently in place.
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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