-- Transaction, structured as an asset sale, achieves key step in Company's strategic plan --
ELMA, N.Y., Aug. 3, 2023 /PRNewswire/ -- Servotronics, Inc. (NYSE American – SVT), a designer and manufacturer of servo-control components and other advanced technology products, today announced it has closed the sale of assets associated with its Ontario Knife Company (OKC) business to Marion, Virginia based Blue Ridge Knives, Inc. (BRK).
"We are pleased to take another step forward in our strategic plan with the sale of the Ontario Knife Company's assets. We believe this sale represents the best option for the business, and we believe that Blue Ridge Knives will uphold OKC's longstanding brand and quality commitments," said Servotronics Chief Executive Officer William F. Farrell, Jr. "As part of our review of strategic alternatives, we have decided to wind down the business of our Consumer Products Group and dedicate our focus and resources to growing our Advanced Technology Group."
Phil Martin, President of Blue Ridge Knives, Inc., commented, "We are excited to add the longstanding heritage and brands of Ontario Knife Company to the BRK portfolio. The combination of OKC and our extensive dealer network provides considerable opportunities to grow our business and enhance our position in the tactical, outdoor and hunting markets."
Servotronics sold substantially all inventory, intellectual property, tangible personal property and goodwill of the Ontario Knife Company to Blue Ridge Knives for an aggregate purchase price of $2.1 million, subject to a post-closing adjustment based on inventory values. The company plans to use the funds to invest in organic growth initiatives within its core Advanced Technology Group.
Servotronics designs, develops and manufactures servo controls and other components for various commercial and government applications including aircraft, jet engines, missiles, manufacturing equipment and other aerospace applications at its operating facilities in Elma and Franklinville, New York.
This news release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements the Company makes regarding expected operating results, the utilization of production resources and liquidity to fund its business operations. Forward-looking statements involve numerous risks and uncertainties which may cause the actual results of the Company to be materially different from future results expressed or implied by such forward-looking statements. There are a number of factors that will influence the Company's future operations, including: uncertainties in today's global economy, including political risks, adverse changes in legal and regulatory environments, and difficulty in predicting defense appropriations, the introduction of new technologies and the impact of competitive products, the vitality of the commercial aviation industry and its ability to purchase new aircraft, the willingness and ability of the Company's customers to fund long-term purchase programs, and market demand and acceptance both for the Company's products and its customers' products which incorporate Company-made components, the Company's ability to accurately align capacity with demand, the availability of financing and changes in interest rates, the outcome of pending and potential litigation, the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses' and governments' responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers' businesses, and on global supply chains and the additional risks discussed in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.
SERVOTRONICS, INC. (SVT) IS LISTED ON NYSE American
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SOURCE Servotronics, Inc.