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.