Continuing our commitment to a strong and capable U.S. Defense Industrial Base
FORT WORTH, TEXAS April 6, 2021 – Elbit Systems of America, LLC (“Elbit Systems of America”) has completed the acquisition of Sparton Corporation (“Sparton”) from an affiliate of Cerberus Capital Management, L.P. for $380 million, subject to customary price adjustments, resulting in a significant expansion of Elbit Systems of America in the United States.
Sparton, with its 120-year history and decades of defense experience spanning from World War I to today, is a U.S.-based premier supplier of critical undersea warfare solutions to the U.S. Navy and its allies, as well as engineered products for the defense industry.
“We welcome Sparton’s employees to the Elbit Systems of America family. Acquiring Sparton, one of the primary American suppliers of sonobuoys, as well as other undersea warfare products, provides us with another significant franchise and an expansion of our business with the U.S. Navy and within the U.S.,” said Raanan Horowitz, President & CEO of Elbit Systems of America. “Sparton has been and will continue to be led by a strong and capable management team, and has a good reputation with the U.S. Navy customer. I believe this acquisition will have a positive impact on our growth in both the near and long-term as we continue to invest in Sparton and work to expand its business portfolio and capabilities."
“Demand for our undersea warfare products is increasing as a result of a heightened threat environment in both the Indo-Pacific and Atlantic,” said Bill Toti, President of Sparton De Leon Springs LLC (“Sparton De Leon Springs”), an Elbit Systems of America company. “With Elbit Systems of America’s support, we will continue to be well positioned to capitalize on growing opportunities in the undersea environment with our leading technology and distinctive capabilities.”
As part the acquisition, Elbit Systems of America has established an independent U.S. Proxy Board to oversee all of Sparton De Leon Springs’ Undersea business activities, allowing it to exclusively focus on higher sensitivity solutions and programs for U.S. customers. The independent Sparton De Leon Springs’ Proxy Board members are the Honorable Kenneth J. Krieg, Mr. Brett B. Lambert, and Admiral Timothy J. Keating, USN (Ret.).
Sparton’s Aydin Displays and Stealth divisions will operate as part of Elbit Systems of America’s existing security structure. “Combining their superior technology and products with Elbit Systems of America’s Airborne Solutions business unit will generate additional capabilities for our customers,” Mr. Horowitz said.
Elbit Systems of America operates under a Special Security Agreement with the U.S. Department of Defense that grants the company full rights, privileges, and responsibilities to provide advanced technology for U.S. national security needs. “Elbit Systems of America enjoys a decades-long record of performance supporting mission critical programs for the U.S. government, and an outstanding record of superior security and trust.” Mr. Horowitz added.