Inside the Fight for Control of Servotronics: Paul Snyder's SAVE Servotronics Plan Takes Center Stage

Rhea-AI Summary

Servotronics (SVT) is facing a proxy fight for control as Paul Snyder III, the company's largest individual shareholder with 15.2% ownership, challenges the current board. Snyder has introduced the SAVE Servotronics plan, a comprehensive strategy aimed at revitalizing the Elma, New York-based aerospace servo valve manufacturer.

The plan focuses on four key areas: strategic leadership, accountability and transparency, value creation, and employee empowerment. Through the first nine months of 2024, Servotronics reported a net loss of $251,000 on sales of $35.1 million. The company's stock price remains stagnant at 2016 levels, while the S&P 500 has nearly tripled during the same period.

On January 13, 2025, Snyder initiated a proxy contest to secure board seats for himself, Charles 'Chris' Alfiero, and two other nominees. Subsequently, on January 28, he demanded an internal investigation into potential unjust enrichment at the company.

Positive

• Large shareholder (15.2%) actively pushing for corporate governance reform
• Comprehensive restructuring plan proposed to improve performance
• Strong focus on operational efficiencies and growth initiatives

Negative

• Net loss of $251,000 in first 9 months of 2024
• Stock price stagnant at 2016 levels while S&P 500 tripled
• Potential corporate governance issues requiring internal investigation
• Underperforming financial results indicating operational inefficiencies

News Market Reaction

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1 alert

% News Effect

On the day this news was published, SVT declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Beaver Hollow Wellness proxy fight featured in The Buffalo News

BUFFALO, N.Y., Feb. 25, 2025 /PRNewswire/ -- The Buffalo News recently published an in-depth story on the proxy fight for control of Servotronics, Inc. (NYSE American – SVT), the Elma, New York-based manufacturer of high-performance servo valves for the aerospace industry. The battle pits Paul Snyder III, Servotronics' largest individual shareholder, against the current board, with Snyder championing his transformative SAVE Servotronics plan to revitalize the company and protect Western New York jobs.

According to The Buffalo News, "A dissident shareholder campaign aiming to win a majority on Servotronics' board involves some prominent Buffalo family names. Paul Snyder III, who is spearheading the effort, is Servotronics' largest individual shareholder, owning 15.2% of its shares. Charles 'Chris' Alfiero, the son of prominent Buffalo executive Sal Alfiero who now oversees the family's business and charitable ventures, is one of the group's nominees for a board seat."

Read the full article from *The Buffalo News* here: [Inside the fight for control of Servotronics](https://buffalonews.com/news/local/business/inside-the-fight-for-control-of-servotronics/article_1d9308d8-e7e0-11ef-9608-0f7d82dc8211.html).

The SAVE Servotronics Plan: A Path to Renewal and Growth

Snyder's SAVE Servotronics plan is a comprehensive strategy designed to unlock the company's untapped potential while ensuring it remains a vibrant part of the Western New York economy. The plan prioritizes:

1. Strategic Leadership: Electing a board with the experience and vision to drive innovation and operational excellence.
2. Accountability and Transparency: Conducting an internal investigation into potential unjust enrichment to ensure ethical governance.
3. Value Creation: Implementing operational efficiencies and growth initiatives aimed at boosting profitability and shareholder returns.
4. Empowering Employees: Investing in workforce development and innovation to solidify Servotronics' industry leadership.

"I'm passionate about this because I cannot stand by and watch another vital Western New York company decline," Snyder stated. "The SAVE Servotronics plan represents a fresh start—one rooted in accountability, innovation, and a commitment to the community."

A Company at a Crossroads

Servotronics' stagnant stock performance and lackluster financial results underscore the urgent need for change. As The Buffalo News reported, the company's stock price remains at 2016 levels, while the S&P 500 has nearly tripled in that time. Through the first nine months of 2024, Servotronics reported a net loss of $251,000 on sales of $35.1 million, with fourth-quarter and full-year results still unreleased.

In a January 13, 2025 regulatory filing, Snyder formally initiated a proxy contest to secure board seats for himself, Alfiero, and two other highly qualified nominees. On January 28, Snyder issued a formal demand for an internal investigation into potential unjust enrichment at Servotronics, reinforcing his commitment to ethical leadership and shareholder rights.

Growing Support from Employees

Since The Buffalo News story ran, numerous current and former employees of Servotronics have reached out to express their support for the SAVE Servotronics plan. Many have shared their concerns about the company's direction under current leadership and their belief that Snyder's vision offers the best path forward for both the company and its workforce.

Protecting Western New York Jobs

Beyond financial performance, Snyder's vision is deeply rooted in community stewardship. "I'm passionate about this because I cannot stand by and watch another story unfold that is a complete loss to this community, when I have a front-row seat to try to change it," Snyder told The Buffalo News. His SAVE Servotronics plan ensures the company remains headquartered in Western New York, preventing the kind of corporate exodus that has harmed the region in the past.

Make Your Voice Heard

Servotronics shareholders are encouraged to support Snyder's slate of board nominees and the SAVE Servotronics plan—a clear path toward revitalization, profitability, and community prosperity. For questions or more information, please contact Alliance Advisors at BHW@allianceadvisors.com.

Read Beaver Hollow Wellness' related letters to Servotronics shareholders and the Board of Directors here: [Beaver Hollow Wellness Letters](https://www.prnewswire.com/news-releases/beaver-hollow-wellness-issues-letters-to-servotronics-inc-nyse-american---svt-shareholders-and-board-of-directors-302367895.html).

Media Contact:
Kevin Keenan
Keenan Communications Group
716-481-6806
kevin@keenancommunicationsgroup.com

About Servotronics, Inc.:
Servotronics, Inc. is a leading designer and manufacturer of advanced technology servo valves and other high-performance components for the aerospace industry. Based in Elma, New York, the company has long been a key contributor to the region's industrial landscape.

View original content:https://www.prnewswire.com/news-releases/inside-the-fight-for-control-of-servotronics-paul-snyders-save-servotronics-plan-takes-center-stage-302384976.html

SOURCE Beaver Hollow Wellness

FAQ

What is the current financial performance of Servotronics (SVT) in 2024?

Through the first nine months of 2024, SVT reported a net loss of $251,000 on sales of $35.1 million.

How much of Servotronics (SVT) does Paul Snyder III own?

Paul Snyder III is SVT's largest individual shareholder, owning 15.2% of the company's shares.

What are the main components of the SAVE Servotronics plan?

The plan focuses on strategic leadership, accountability and transparency, value creation through operational efficiencies, and employee empowerment.

When did Paul Snyder initiate the proxy contest for Servotronics (SVT)?

Snyder formally initiated the proxy contest on January 13, 2025, seeking board seats for himself and three other nominees.

How has Servotronics (SVT) stock performed compared to the S&P 500?

SVT's stock price has remained at 2016 levels, while the S&P 500 has nearly tripled during the same period.