An affiliate of New York-based buyout firm Cerberus Capital Management LP signed a definitive agreement to buy electromechanical-device maker Sparton Corp.
Under the terms of the deal, Cerberus will acquire all outstanding shares of Sparton's common stock for $18.50 per share in a cash transaction, reflecting a premium of approximately 41% over Sparton's closing share price on Dec. 11, Sparton said.
Sparton's board unanimously approved the offer and asked the company's shareholders to vote for the transaction, which is set to be completed during the first quarter of 2019. The shareholders will convene in a special meeting on an undisclosed date.
The deal is subject to Sparton shareholders' approval, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary closing conditions.
Accounts managed by TCW Asset Management Co. LLC and MSD Partners LP provided debt financing.
Wells Fargo Securities LLC and Raymond James & Associates Inc. were financial advisers to Sparton, while Mayer Brown LLP was its legal adviser. J.P. Morgan Securities LLC served as Cerberus' financial adviser, and Lowenstein Sandler LLP, Kirkland & Ellis LLP and Blank Rome LLP were its legal advisers.