Sparton Acquires Assets of Creonix
Sparton Acquires Assets of Creonix
- Acquisition Expected to Provide $12 Million in Annual Revenue
- Adds Cable and Wire Harness Engineering and Manufacturing Capability
Sparton Corporation (NYSE: SPA) announces that its wholly owned subsidiary, Sparton Electronic Devices, LLC completed the acquisition of certain assets of Creonix, a $12 million revenue business, on June 6, 2013 in an all-cash transaction.
Creonix, located in Bradenton, Florida, primarily manufactures complex electromechanical devices and engineers and manufactures cables and wire harnesses for the Industrial and Military & Aerospace markets, including products and components for battery monitoring, high speed optical imaging, neuromuscular incapacitation, imaging and wiring assemblies for military applications, and electrical grid transformer protection systems. The company also has a northeast sales office in New Milford, Connecticut and a solid new business development pipeline of new and existing customers.
"The addition of Creonix meets the criteria of our growth strategy by providing the additional capability of cable and wire harness engineering and assembly, further expansion into the Industrial and Mil/Aero markets, diversification of our customer base, and the increased utilization of our existing assets,” stated Cary B. Wood, president and chief executive officer of Sparton. “Additionally, Creonix brings solid, long term customer relationships that will benefit from Sparton’s expanded list of service offerings.”
“We are pleased to have Creonix move into our Brooksville location which will further enhance our operation’s capabilities by adding full complex electromechanical device manufacturing, box build, wire harness development and assembly, circuit card assembly, and quick-turn new product introduction through SpartonEXPRESSTM,” commented Robert Grimm, vice president & general manager of Sparton’s Complex Systems.
“In the coming months we will be transitioning Creonix’s customers to Brooksville with an orderly and seamless approach, using contemporary tools such as Sparton’s New Product Introduction (NPI) and Advanced Product Quality Planning (APQP) processes.”
“We are pleased to join the Sparton team,” stated Ken Piela, CEO of Creonix. “With the additional support and enhanced capabilities Sparton has to offer, we expect to be able to fulfill our customers’ needs in a more timely and effective manner.”
Mr. Piela will join Sparton to oversee the transition and integration of Creonix’s customers to the Brooksville facility, to maintain relationships with their current customers, and to expand current and future customer accounts.
“This tuck-in acquisition is a great example of our strategy to maximize existing assets. Since there will not be an addition of significant fixed overhead in Brooksville related to this transaction, we expect Creonix’s revenue to enhance Complex System’s EBITDA. The acquisition is expected to be accretive to earnings within the next 9-12 months, once transitioning activities are completed,” Mr. Wood concluded.
About Sparton Corporation
Sparton Corporation (NYSE:SPA), now in its 113th 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, Military & Aerospace, and Industrial & Instrumentation. Headquartered in Schaumburg, IL, Sparton currently has five manufacturing locations worldwide. Sparton's Web site may be accessed at http://www.sparton.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.
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