SVT News & Events

Star Equity Fund, owner of approximately 6% of the common stock of Servotronics (SVT), comments on Servotronics' agreement with TransDigm (TDG), under which a subsidiary of TransDigm will complete a tender offer to acquire all of the outstanding shares of Servotronics at $47.00 per share in an all-cash transaction. This Transaction values SVT at a 357% premium over its May 16, 2025 closing price, one trading day prior to the Transaction announcement. The company said, "In response to sustained pressure from our campaign, which included director nominations in 2022 and 2023, as well as press releases, SEC filings, and open letters to the Company's Board of Directors since 2022, the Board took several shareholder-friendly steps we believe it would not have taken on its own. These steps, which culminated in the March 2025 announcement that the Board had commenced a review of strategic alternatives, resulting in the Transaction, and include: The addition of new independent directors and significant shareholders Evan Wax and Brent Baird to the Board. The termination of the Company's poison pill and the resignation of non-qualified directors. The August 2023 divestiture of the Company's non-core Consumer Products division. These significant changes, driven by our shareholder advocacy campaign, ultimately resulted in SVT's agreement with TransDigm. From the outset, we maintained that SVT's shares were significantly undervalued and that the intrinsic value Servotronics offered to a strategic buyer far exceeded its trading price over its many years as a standalone public company. This Transaction, as well as the high level of interest from numerous parties during the Company's strategic review process, ultimately validated our view."

Servotronics (SVT) and TransDigm (TDG) have amended the terms of the Agreement and Plan of Merger under which a subsidiary of TransDigm will commence a tender offer to acquire all of the outstanding shares of Servotronics. Pursuant to the amendment, the tender offer price has been increased to $47.00 per share in cash for all of the issued and outstanding common shares of Servotronics. The merger agreement was amended after Servotronics notified TransDigm, pursuant to the terms of the merger agreement, that the company received an unsolicited acquisition proposal from a third party. In connection with the amendment, the company's board determined that this third-party acquisition proposal does not constitute a superior proposal under the merger agreement, as amended.

Servotronics' (SVT) largest shareholder Beaver Hollow Wellness, or BHW, will conclude its proxy solicitation campaign following the proposed acquisition of Servotronics by TransDigm (TDG). BHW believes that its campaign already resulted in a 250+% share price premium compared to the stock's level when BHW nominated its board slate in January and that the premium is a direct outcome of the pressure applied by BHW's S.A.V.E. Servotronics Plan, which aimed to catalyze overdue strategic action by the incumbent board. BHW believes that this transaction not only delivers an exceptional return to shareholders, but also reflects a significant step forward in preserving Western New York's aerospace manufacturing base. Although BHW is concluding its campaign, it will continue to advocate for transparency and accountability in how the acquisition is implemented. The firm is encouraging TransDigm to issue a formal public commitment to maintain and grow Servotronics' operations in Elma and Franklinville, N.Y.