Sparton Corporation Completes Acquisition of Astro Instrumentation LLC(JACKSON, Mich, May 31, 2006) -- Electronics Design and Manufacturing (EMS) service provider, Sparton Corporation (NYSE:SPA) announced that it signed a membership purchase agreement and completed the acquisition of Astro Instrumentation, LLC ("Astro") on May 31, 2006.
Astro is a privately owned company located in Strongsville, Ohio and has been in business for approximately 5 years. Astro was formed in 2000 by Hal Waldman and Doug Wood of Pittsburgh, Pennsylvania who owned the company through intervening entities. Astro's audited sales volume for the year ended December 31, 2005, was approximately $33 million.
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The purchase price is approximately $26.15 million. Additional consideration may be paid to the sellers over the four years following the closing based on a percentage of earnings before interest and taxes. Under the terms of the Purchase Agreement, Mr. Waldman and Mr. Wood entered into non-competition agreements with the Company.
Astro designs, manufactures and sells a variety of specialized medical products, generally involving high-quality medical laboratory test equipment. Astro operates from a 40,000 square foot facility in an industrial park. A 20,000 square foot addition to the facility is now under construction.
Sparton's intent is to operate the business as a wholly-owned subsidiary at its present location and with the current operating management and staff.
Source : Sparton Corporation