- Acquisition Expected to Provide $8 Million in Annual Revenue
- Adds Product Development Capabilities for the Medical & Biotech Market in the Southern California Geographical Region
SCHAUMBURG, Ill.--(BUSINESS WIRE)--Mar. 18, 2014-- Sparton Corporation (NYSE:SPA) announces that it completed an all-cash transaction to acquire Aubrey Group, Inc., an $8 million revenue business, on March 17, 2014. Aubrey will continue to service its current and future customers out of its Irvine, CA location.
Aubrey Group is a design and manufacturing company using state-of-the-art technologies to develop new products for OEMs in the Medical and Biotechnological markets. Inventors, entrepreneurs, and industry leading OEMs utilize Aubrey Group’s design and engineering teams to develop innovative solutions in a timely manner, delivering its clients’ new products into the marketplace faster and more cost effectively. Aubrey Group is FDA registered, ISO 13485 and ISO 9001 certified, licensed by the California Food and Drug Branch and compliant with FDA Design Controls, IEC, and UL requirements. Further, a Class 100,000 (ISO Class 8) clean room is available to offer sterile packaging, sealing, and sterilization validation services.
“We are pleased to announce the acquisition of Aubrey Group, which will add an innovative product development offering to our portfolio, allowing us to provide enhanced services throughout the product lifecycle,” stated Cary B. Wood, President and Chief Executive Officer of Sparton.
In addition to broader design and engineering capabilities, Aubrey Group, founded in 1994 by Vytas Pazemenas, brings over 20 years of experience and expertise in a number of core platforms: Medical Device Controllers, RF Generation, and Pumps and Disposables. Medical Device Controllers have been developed to include versatile computer control and display subsystems that can be modified to suit various medical applications. Unlike most off-the-shelf applications, these are specifically designed for medical products and can be fully validated for use in critical medical devices. A number of RF generator systems for use in ablation and electrosurgery have been developed in 400kHz to 10MHz frequency ranges and 150W to 1,500W in maximum output power. All share very high efficiency power output stages with a high dynamic output power range capability and have the ability to measure incident and reflected power very accurately and precisely control the power to the load. Aubrey Group also has a proven track record developing custom peristaltic and diaphragm pumps and their associated disposables. The pumps have been used in various applications, such as blood collection and processing systems, kidney dialysis machines, surgical systems, and in-vitro diagnostic systems.
“A key component of our strategic vision at Sparton is to realize synergistic acquisition opportunities that add value to the core products and services in our portfolio. The acquisition of Aubrey Group aligns tremendously with this vision. By combining our businesses, Sparton and Aubrey have the capability to enter into a new set of customer engagements that allow us to offer product design, product development, and product manufacturing more completely under one umbrella,” Mr. Wood concluded.
The transaction was funded through Sparton’s borrowings under the credit facility currently in place with BMO Harris Bank.
B. Riley & Co., LLC acted as financial advisors to the Aubrey Group in connection with this transaction.
About Sparton Corporation
Sparton Corporation (NYSE:SPA), now in its 114th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service, and refurbishment. The primary markets served are Medical & Biotechnology, Military & Aerospace, and Industrial & Commercial. Headquartered in Schaumburg, IL, Sparton currently has eight manufacturing locations and four engineering design centers worldwide. Sparton's Web site may be accessed at www.sparton.com. Aubrey Group’s website may be accessed at www.aubreygroup.com.
Safe Harbor and Fair Disclosure Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: To the extent any statements made in this release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties, including the difficulty of predicting future results, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in Sparton's filings with the Securities and Exchange Commission (SEC). The matters discussed in this press release may also involve risks and uncertainties concerning Sparton's services described in Sparton's filings with the SEC. In particular, see the risk factors described in Sparton's most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.