Sparton Corporation announced that its wholly owned subsidiary, Sparton DeLeon Springs, LLC completed the acquisition of certain assets of Argotec, Inc. on December 8, 2014 in an all-cash transaction.
Argotec, located in Longwood, FL, develops and manufactures sonar transducer products and components for the U.S. Navy, and provides aftermarket servicing. The products, primarily hydrophones and projectors, are used in test equipment, environmental sensor arrays, and various military and commercial sonar applications. These products will be consolidated into the Navigation & Exploration (NavEx) segment of Engineering Components and Products (ECP) located at Sparton’s DeLeon Springs, FL facility.
"Although not material in size, Argotec brings valuable intellectual property to our NavEx segment, as well as a consistent single-sourced revenue stream for key military end applications, further enhancing our growth opportunities,” stated Cary B. Wood, president and chief executive officer of Sparton. “As we enhance our current product offerings with these newly acquired products and components, we will explore new engineering development opportunities within the U.S. Navy, foreign naval operations, and prime defense contractors.”
“We are pleased to consolidate Argotec’s products into the NavEx business segment. The products we are acquiring have been a mainstay for a number of key niche military applications. The intellectual property, in conjunction with Sparton’s current acoustic transducer expertise, will undoubtedly provide our customers with new and innovative solutions in the future,” commented Jim Lackemacher, group vice president of Engineered Components & Products. “In the coming weeks, we will be transitioning Argotec’s customers to our DeLeon Springs facility in an orderly and seamless manner, using tools such as Sparton’s New Product Introduction (NPI) and Advanced Product Quality Planning (APQP) processes.”
“This tuck-in acquisition, the second this month, furthers our strategy to maximize existing assets and enhances our portfolio of proprietary products. The acquisition is expected to be accretive to earnings within the next six months, following the completion of transitioning activities,” Mr. Wood concluded.
Source: http://sparton.com/