M&A

Sparton completes sale of itself, goes private

Sparton Corp. said Monday it has completed the sale of itself to private equity firm Cerberus Capital Management for approximately $181.5 million in cash, or $18.50 per share.

First announced in mid-December, the transaction completes an almost two-year process for Sparton to find a buyer. Sparton also stops being a publicly-traded company on the New York Stock Exchange.

The defense electronics company ended the process of being acquired by British contractor Ultra Electronics over concerns the deal would not make it through the U.S. antitrust review process.

Sparton designs and builds electromechanical devices for military and aerospace customers.

In early December, Cerberus announced it would acquire a 70-percent ownership stake in the defense business of armored vehicle manufacturer Navistar.

Cerberus’ other major government market investment is DynCorp International, which was acquired in 2010 for $1 billion.

Wells Fargo Securities and Raymond James & Associates Inc. were financial advisers to Sparton. Mayer Brown LLP was legal counsel to Sparton.

J.P. Morgan Securities was financial adviser to Cerberus in the Sparton transaction. Lowenstein Sandler LLP, Kirkland & Ellis LLP, and Blank Rome LLP were legal counsel to Cerberus.

About the Author

Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at rwilkers@washingtontechnology.com. Follow him on Twitter: @rosswilkers. Also find and connect with him on LinkedIn.

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