Shares of Servotronics Inc. (NYSE:SVT) are set to soar after the aerospace components manufacturer agreed to be acquired by TransDigm Group Incorporated (NYSE:TDG) in a deal valued at approximately $110 million. The all-cash transaction will see TransDigm purchase Servotronics for $38.50 per share—representing a staggering 274% premium over the stock’s May 16, 2025, closing price.
The merger agreement, unanimously approved by Servotronics’ board, will make the company a wholly owned indirect subsidiary of TransDigm, a global leader in highly engineered aerospace components. The transaction will be funded through TransDigm’s existing cash reserves and is not contingent on financing.
Under the terms of the deal, TransDigm will launch a tender offer to acquire all outstanding shares of Servotronics. The offer is expected to commence on or before June 9, 2025, and will require a majority of Servotronics shareholders to tender their shares for completion.
Servotronics, which generated roughly $45 million in revenue in fiscal 2024, is known for its advanced servo control systems and proprietary components used in aerospace and defense applications.
Kevin Stein, President and CEO of TransDigm, commented on the acquisition: “Servotronics brings a suite of proprietary, highly engineered products with significant aftermarket potential—exactly the kind of business that fits our strategic focus.”
Servotronics CEO Bill Farrell Jr. emphasized the opportunity for continued growth under the TransDigm umbrella. “Joining forces with a well-capitalized aerospace leader like TransDigm positions us to build on our technical strengths and deliver long-term value to our customers and shareholders.”
The transaction reflects strong investor confidence, with SVT stock poised for a sharp jump when markets open. Legal and financial advisors on the deal include Baker & Hostetler LLP for TransDigm and Houlihan Lokey (NYSE:HLI) and Bond Schoeneck & King for Servotronics.
The acquisition is expected to bolster TransDigm’s product suite and deepen its footprint in the aerospace and defense sector.
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