Elbit Systems of America on Tuesday said it has completed its $380 million acquisition of Sparton Corp. in a deal that expands its work on naval systems.
The acquisition also expands Elbit America’s footprint in the U.S. Elbit America is a subsidiary of Israel’s Elbit Systems [ESLT].
Sparton, which is based in Florida, previously was owned by the private equity firm Cerberus Capital Management. Albion River also invested in Sparton with Cerberus.
“Acquiring Sparton, one of the primary American suppliers of sonobuoys, as well as other undersea warfare products, provides us with another significant franchise and an expansion of our business with the U.S. Navy and within the U.S.,” Raanan Horowitz, president and CEO of Elbit America, said in a statement. “Sparton has been and will continue to be led by a strong and capable management team, and has a good reputation with the U.S. Navy customer. I believe this acquisition will have a positive impact on our growth in both the near and long-term as we continue to invest in Sparton and work to expand its business portfolio and capabilities.”
Elbit America has established an independent proxy board to oversee the activities of Sparton’s Undersea division, Sparton De Leon Springs LLC, to allow it to “exclusively focus on higher sensitivity solutions and programs for U.S. customers,” the company said.
Sparton De Leon Springs is led by President Bill Toti. Its proxy board members are Kenneth Krieg, Brett Lambert and retired Navy Adm. Timothy Keating. The business unit has about 500 employees.
“Demand for our undersea warfare products is increasing as a result of a heightened threat environment in both the Indo-Pacific and Atlantic,” Toti said in a statement.
Sparton’s two other division, Aydin and Stealth, are now part of Elbit America’s Airborne Solutions business unit within the company’s Special Security Agreement with the U.S. Defense Department. The SSA mitigates foreign ownership of a U.S. business.