Sparton To Acquire Aydin Displays, Inc.
- Sparton Corporation (NYSE: SPA) announces that its wholly owned subsidiary, Sparton Aydin, LLC has entered into a definitive purchase agreement to acquire certain assets and liabilities of Aydin Displays, Inc., an $18 million revenue business, in an all-cash transaction.
Aydin Displays, Inc., a subsidiary of Video Display Corp. (NASDAQ: VIDE), located in Birdsboro, Pennsylvania, develops enhanced flat panel display and touch-screen solutions with application-critical performance criteria including ruggedization, high resolution, color accuracy, response/refresh times, sunlight readability and other criteria such as magnetic interference and noise/TEMPEST emissions for the Military & Aerospace and Civil Marine. These products are currently specified in the P8A behind-the-cockpit control center, the command and control centers of many U.S. Navy ships, FAA air traffic control systems, and cockpit command centers for various civil marine applications. Once the transaction is complete, the company will continue to operate as Aydin Displays.
"The addition of Aydin Displays meets one aspect of our growth strategy by providing engineered product content to further enhance our capabilities within the electromechanical value stream," stated Cary B. Wood, president and chief executive officer of Sparton. "Additionally, Aydinâ's products are an integral part of the P8A program, as are our sonobuoy products. We also believe we will be able to enhance the solutions selling approach of both Aydin Displays and our Defense & Security Systems business segment to the Department of Defense and other prime defense contractors, as well as key customers located across the globe."
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"We look forward to joining the Sparton team" stated Art Mengel, president and general manager of Aydin Displays. â€œWith the additional support and enhanced capabilities Sparton has to offer, we expect to be able to fulfill our customers' needs in a more timely and effective manner as well being able to pursue the sales of our products and solutions into alternate end markets."
"As Sparton continues to implement its strategic growth plan, we plan to meet our growth expectations by focusing on new business development, internal product research and development, and complementary and compatible acquisitions. We are pleased to have Aydin Displays joining the Sparton family and look forward to the added content it provides as well as the potential domestic and foreign cross-selling opportunities with our Defense & Security Systems business segment," Mr. Wood concluded.
The transaction is expected to close within 30 days and will be funded through Spartonâ€™s existing cash balances and borrowings under the credit facility currently in place with BMO Harris Bank.
Source : Sparton Corporation - view original press release