Servotronics Inc. (NYSE:SVT) saw its stock price rocket by 24.5% after announcing an updated merger agreement with aerospace conglomerate TransDigm Inc., which includes a raised all-cash offer of $47.00 per share for all outstanding shares.
The revised acquisition terms came in response to an unsolicited bid Servotronics received from a third party. However, after assessing the alternative offer, the company’s Board of Directors concluded it did not surpass the value and terms proposed by TransDigm. Consequently, the board reaffirmed its support for the amended agreement.
The market reacted swiftly to the enhanced bid, sending Servotronics’ stock sharply higher. The jump reflects investor optimism regarding the company’s future under TransDigm’s ownership and confidence in the higher valuation.
This latest development in the takeover process highlights growing momentum behind the deal, as the improved tender price underscores TransDigm’s belief in the strategic value of acquiring Servotronics. The deal marks a noteworthy move within the aerospace and defense components space, suggesting a strong synergy between the two firms.
With the tender offer now enhanced and moving forward, shareholders are poised to benefit from substantial returns. The board’s decision to continue with TransDigm rather than pursue the unsolicited bid reinforces a strategic commitment to the existing partnership and signals alignment on long-term value creation.
Investors will be watching closely for the next steps in the acquisition timeline as the deal nears completion under more attractive terms.