Elbit Systems of America Strikes $380M Deal for Sparton; Bill Toti, Bezhalel Machlis Quoted

Elbit Systems of America Strikes $380M Deal for Sparton; Bill Toti, Bezhalel Machlis Quoted
Bill Toti CEO Sparton

Elbit Systems’ (Nasdaq: ESLT) U.S. subsidiary has agreed to acquire defense supplier Sparton from an affiliate of Cerberus Capital Management for approximately $380M.

Bill Toti, CEO of Sparton and a previous Wash100 awardee, said in a statement published Wednesday the strategic combination with Elbit Systems of America will enable Sparton to further expand its market presence and continue to deliver innovative platforms in support of clients’ needs.

Sparton is based in De Leon Springs, Florida, and is focused on providing proprietary products for defense and commercial customers. The company,  which was acquired by Cerberus in 2019, has three divisions: undersea warfare solutions, stealth and Aydin displays. It transitioned into a pure-play defense supplier supporting the U.S. Navy, defense contractors and allied governments after it divested its manufacturing and design services segment.

“The acquisition of Sparton will strengthen Elbit Systems of America's capabilities and will enable expansion of activities in the naval arena,” said Bezhalel Machlis, president and CEO of Elbit Systems.

Moelis & Co. (NYSE: MC) and Evercore served as Sparton’s financial advisers, while Kirkland & Ellis acted as the company’s legal adviser. Covington & Burling advised Elbit Systems of America on the transaction’s legal aspect.

The transaction is expected to close in the next few months, pending regulatory approvals and other customary closing conditions.

You may also be interested in...

RENK to Buy L3Harris’ Combat Propulsion Systems, Magnet-Motor Businesses; Florian Hofbauer Quoted

RENK, a Germany-based maker of automatic transmissions and gear units for military vehicles, has agreed …

COMSovereign Expands Aerial Platform Business Through Sky Sapience Acquisition; Dan Hodges Quoted

Dallas-based communications technology company COMSovereign Holding (Nasdaq: COMS) has acquired Israel-based aerial rotorcraft developer Sky …