TransDigm Group to Acquire Servotronics in $110 Million Deal
Deal News | May 19, 2025 | PR Newswire Cision TransDigm Group Inc.; Servotronics, Inc.
In a notable acquisition in the aerospace sector, TransDigm Group Incorporated has secured a definitive merger agreement to acquire Servotronics, Inc. The deal entails Servotronics becoming an indirect subsidiary of TransDigm, with an acquisition price of $38.50 per share, totaling approximately $110 million. This price represents a significant 274% premium over Servotronics' recent closing price. Both companies are deeply entrenched in aerospace and defense, with Servotronics known for its servo valves and controls and TransDigm for its diverse range of aircraft components. This merger promises to enhance TransDigm’s portfolio, particularly in aftermarket aerospace service and commercial aerospace markets, given Servotronics' proprietary product offerings and strong presence across various aerospace platforms. The boards of both companies have unanimously approved the transaction, which is set to be completed following a tender offer that transpires by June 2025. Legal counsel for TransDigm is Baker & Hostetler LLP, while Houlihan Lokey provides financial advisory alongside Bond Schoeneck & King for legal services to Servotronics.
Sectors
- Aerospace & Defense
- Manufacturing
Geography
- United States – Both companies involved in the transaction are based in the United States, with headquarters in Cleveland, Ohio, and Elma, New York.
Industry
- Aerospace & Defense – The acquisition involves companies that design and manufacture components for aerospace and defense applications.
- Manufacturing – Both TransDigm and Servotronics are involved in the manufacturing of highly engineered components for various technological applications.
Financials
- $110 million – Total value of the acquisition deal for Servotronics by TransDigm.
- $38.50 per share – Price per share offered by TransDigm for Servotronics, reflecting a 274% premium.
- $45 million – Servotronics' revenue for its fiscal year ended December 31, 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| TransDigm Group Incorporated | Bidding Company | Company | A leading global designer and supplier of highly engineered aircraft components. |
| Servotronics, Inc. | Target Company | Company | A designer and manufacturer of servo controls and components for aerospace and defense applications. |
| Baker & Hostetler LLP | Legal Advisor to TransDigm | Company | Providing legal counsel for the acquisition transaction. |
| Houlihan Lokey | Financial Advisor to Servotronics | Company | Acting as financial advisor for the acquisition transaction. |
| Bond Schoeneck & King | Legal Advisor to Servotronics | Company | Providing legal counsel for the acquisition transaction. |
| Kevin Stein | Executive | Person | President and CEO of TransDigm Group. |
| Bill Farrell Jr. | Executive | Person | CEO of Servotronics, Inc. |