Servotronics completes merger with TransDigm, delists from NYSE American

Servotronics, Inc. (NYSE American:SVT) announced the completion of its merger with TransDigm Inc. on Tuesday, according to a statement based on a filing with the Securities and Exchange Commission. The deal comes after an impressive 323% surge in Servotronics’ stock price over the past six months, according to InvestingPro data. As a result of the transaction, Servotronics has become a wholly owned subsidiary of TransDigm.

The merger followed a tender offer by TransDigm’s wholly owned subsidiary, TDG Rise Merger Sub, Inc., to acquire all outstanding shares of Servotronics common stock at $47.00 per share in cash. The offer expired one minute after 11:59 p.m. Eastern Time on Monday, June 30, with approximately 87.09% of Servotronics shares validly tendered and not withdrawn. On Tuesday, Merger Sub accepted all validly tendered shares for payment.

Following the tender offer, TDG Rise Merger Sub was merged with and into Servotronics, with Servotronics surviving as a wholly owned subsidiary of TransDigm. At the effective time of the merger, each outstanding share of Servotronics common stock, other than shares already accepted in the offer or those subject to appraisal rights under Delaware law, was converted into the right to receive $47.00 in cash, subject to applicable tax withholding. Prior to the merger, Servotronics maintained a strong financial position with a current ratio of 3.46, indicating solid liquidity, as revealed by InvestingPro analysis.

In connection with the closing of the transaction, Servotronics terminated its June 2023 credit facility with Rosenthal & Rosenthal, Inc., repaying all outstanding obligations. The company also terminated its 2022 Equity Incentive Plan.

On Tuesday, Servotronics notified NYSE American of the merger’s completion and requested that trading in its shares be halted, suspended, and delisted. The company also intends to file for deregistration of its shares with the SEC, ending its reporting obligations under the Securities Exchange Act.

As a result of the merger, the directors and officers of TDG Rise Merger Sub became the directors and officers of Servotronics. All previous directors and officers of Servotronics resigned or were removed in connection with the transaction. The company’s certificate of incorporation and bylaws were amended and restated as part of the merger process.

The aggregate consideration for the transaction was funded by TransDigm’s cash on hand. The information is based on a press release statement and the company’s SEC filing.

In other recent news, Servotronics Inc. has announced significant developments that are drawing investor attention. The company reported approximately $45 million in revenue for the fiscal year ending December 31, 2024. Servotronics has entered into a definitive merger agreement with TransDigm Group Incorporated, valued at approximately $110 million, including certain tax benefits. Under the terms of the merger, TransDigm will initiate a tender offer to purchase all outstanding shares of Servotronics for $38.50 per share in cash, which represents a 274% premium over the previous closing share price. In a recent twist, the merger terms were revised to increase the tender offer to $47.00 per share following an unsolicited proposal from a third party. The Servotronics Board of Directors has unanimously approved the merger, and the tender offer is expected to commence soon. Additionally, at the company’s 2025 Annual Meeting of Stockholders, new board members were elected, and Freed Maxick, P.C. was ratified as the independent registered public accounting firm for the 2025 fiscal year. These developments indicate a strategic move for Servotronics as it transitions to become an indirect wholly owned subsidiary of TransDigm.

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