TransDigm Group Incorporated (TDG) to Acquire Servotronics, Inc. (SVT) in Newly Announced Merger Deal
From Yahoo Finance: 2025-05-19 21:07:00
TransDigm Group Incorporated (NYSE:TDG) and Servotronics, Inc. (NYSEAmerican:SVT) have agreed to a merger where Servotronics will become a subsidiary of TransDigm. The deal values Servotronics at $110 million, offering $38.50 per share, a 274% premium over its closing price on May 16, 2025. The transaction will be funded by TransDigm’s cash reserves.
Following the tender offer, TransDigm Group Incorporated (NYSE:TDG) plans to finalize the acquisition through a merger at the same price for any remaining shares. The deal does not rely on external financing and has been unanimously approved by Servotronics, Inc. (NYSEAmerican:SVT)’s Board of Directors. The acquisition aligns with TDG’s strategy of acquiring aerospace businesses with strong aftermarket potential.
TransDigm Group Incorporated (NYSE:TDG) has been actively pursuing acquisitions of aerospace companies with aftermarket potential, including DART Aerospace, Calspan, CPI’s electron device division, and Raptor Scientific. The company’s stock has seen a 15% surge since the beginning of 2025. Despite TDG’s growth potential, some investors believe there are AI stocks with higher return potential and lower downside risk.
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