One Equity Partners has agreed to acquire Sparton‘s manufacturing and design services segment, allowing the latter company to focus exclusively on its engineered defense products business.
Bill Toti, president and CEO of Sparton’s engineered components and products business and a previous Wash100 awardee will become CEO of Sparton as the ECP segment will transition into an independent entity upon the deal’s completion, Sparton said Friday.
Sparton will continue to be a partner in the ERAPSCO joint venture and design and build proprietary engineering platforms for U.S. and foreign defense clients and commercial customers as a pure-play defense products supplier. The company expects the transaction to be finalized in the third quarter of 2020, subject to regulatory approvals and other customary closing conditions.
“Operating our engineered defense products business as Sparton, a standalone entity, we will be able to focus exclusively on providing innovative products and executing on opportunities that drive our platform’s growth,” Toti said. “We are excited to build upon our strong foundation and accelerate our ability to meet the critical needs of our customers in the United States and globally.”
Sparton ECP produces sonobuoys, inertial systems and ruggedized flat panel displays for the U.S. Navy and foreign government agencies.
Paul Fraipont, president and CEO of Sparton’s MDS segment, will continue to lead the business as a standalone entity under the name “Spartronics.” MDS has nine manufacturing facilities in the U.S. and produces printed circuit card assemblies, cable/wire harnesses and other electronic and electromechanical devices for customers in industrial, aerospace and medical markets.
Lincoln International and Kirkland & Ellis LLP respectively serve as Sparton’s financial and legal advisers in the transaction.