TransDigm and Servotronics Announce Successful Completion of Tender Offer and TransDigm's Acquisition of Servotronics
Rhea-AI Summary
TransDigm Group (NYSE: TDG) has successfully completed its acquisition of Servotronics (NYSE American: SVT) through a tender offer at $47.00 per share in cash. The tender offer, which expired on June 30, 2025, saw approximately 87.09% of outstanding shares (2,228,197 shares) validly tendered and accepted for payment.
Following the successful tender offer, TransDigm executed a merger on July 1, 2025, without requiring a stockholder vote, under Section 251(h) of the Delaware General Corporation Law. All remaining outstanding shares not tendered will be converted to the right to receive the same $47.00 per share cash consideration. As part of the acquisition, Servotronics will be delisted from NYSE American.
The acquisition combines TransDigm's position as a leading global designer and supplier of engineered aircraft components with Servotronics' expertise in servo controls and components for aerospace applications, including aircraft, jet engines, and missiles.
Positive
- Successful tender offer with high participation rate of 87.09% of outstanding shares
- Strategic expansion of TransDigm's aerospace component capabilities through Servotronics' servo controls expertise
- Streamlined acquisition process completed without requiring additional stockholder vote
Negative
- Delisting of Servotronics from NYSE American, reducing investment options in the aerospace component sector
Insights
TransDigm completes Servotronics acquisition at $47/share, expanding aerospace component portfolio through successful 87% share tender.
TransDigm's acquisition of Servotronics marks a strategic expansion of its aerospace components portfolio. The $47.00 per share all-cash transaction saw strong shareholder support with
This acquisition follows TransDigm's established pattern of acquiring specialized aerospace component manufacturers to enhance its product offerings. Servotronics' expertise in servo controls and components for aircraft, jet engines, and missiles complements TransDigm's existing portfolio of highly engineered aircraft parts. The remaining Servotronics shares not tendered will receive the equivalent cash consideration, and the company will be delisted from NYSE American.
The transaction structure—a tender offer followed by a merger—is designed for efficiency, allowing TransDigm to quickly integrate Servotronics into its operations. This streamlined approach typically signals confidence in achieving rapid post-merger integration. For TransDigm, which supplies components to nearly all commercial and military aircraft currently in service, this acquisition strengthens its market position by adding Servotronics' specialized manufacturing capabilities in Elma and Franklinville, New York.
The tender offer expired one minute after 11:59 p.m.,
As a result of its acceptance of the shares tendered in the tender offer, TransDigm and its affiliates acquired a sufficient number of shares of Servotronics' common stock to complete the acquisition by merger without a vote of Servotronics' stockholders pursuant to Section 251(h) of the Delaware General Corporation Law. As such, the merger was completed today, July 1, 2025.
Each outstanding share of Servotronics' common stock that was not validly tendered in the tender offer (other than shares irrevocably accepted for payment in the tender offer, treasury stock of Servotronics to be cancelled or shares held by Servotronics stockholders properly exercising their appraisal rights under Section 262 of the DGCL) will be converted into the right to receive an amount equal to the tender offer price. In addition, the common stock of Servotronics will cease to trade on NYSE American and a notice of delisting with respect to shares of Servotronics is expected to be filed promptly.
Advisors
Baker & Hostetler LLP acted as legal counsel to TransDigm. Houlihan Lokey acted as financial advisor and Bond Schoeneck & King acted as legal counsel to Servotronics.
About TransDigm Group
TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, cargo loading, handling and delivery systems and specialized flight, wind tunnel and jet engine testing services and equipment, electronic components used in the generation, amplification, transmission and reception of microwave signals, and complex testing and instrumentation solutions.
About Servotronics, Inc.
Servotronics designs, develops, and manufactures servo controls and other components for various commercial and government applications including aircraft, jet engines, missiles, manufacturing equipment and other aerospace applications at its operating facilities in Elma and Franklinville,
Media / Investor Contacts: | |
TransDigm Group | Servotronics, Inc. |
Investor Relations | Investor Relations |
(216) 706-2945 | (716) 655-5990 |
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SOURCE TransDigm Group Inc.; Servotronics, Inc.
FAQ
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