Core Viewpoint - TransDigm Group Incorporated has announced a definitive merger agreement to acquire Servotronics, Inc., which will become an indirect wholly owned subsidiary of TransDigm, enhancing its portfolio in the aerospace and defense sectors [1][2]. Group 1: Merger Agreement Details - TransDigm will commence a tender offer to acquire all outstanding shares of Servotronics for $38.50 per share in cash, valuing the transaction at approximately $110 million [2][3]. - The cash consideration represents a premium of approximately 274% to Servotronics' closing share price on May 16, 2025 [2]. - The acquisition will be funded with TransDigm's cash on hand and is not subject to any financing conditions [3]. Group 2: Company Profiles - Servotronics is a leading global designer and manufacturer of servo controls and advanced technology components for aerospace and defense applications, generating approximately $45 million in revenue for its fiscal year ended December 31, 2024 [4]. - Servotronics' products have a strong presence across major aerospace and defense platforms, with nearly all revenue derived from proprietary products [4]. - TransDigm is a leading global designer, producer, and supplier of highly engineered aircraft components for commercial and military aircraft, with a diverse range of product offerings [7][8]. Group 3: Strategic Fit and Future Outlook - TransDigm's President and CEO expressed excitement about the acquisition, highlighting Servotronics' proprietary products and significant aftermarket exposure as a good fit with TransDigm's long-standing strategy [5]. - Servotronics' CEO noted that being part of a larger aerospace company will provide growth opportunities and resources for continued product development [5]. - The merger agreement anticipates that TransDigm will commence the cash tender offer for all outstanding shares of Servotronics on or before June 9, 2025 [5].