Servotronics, Inc. Announces Review of Strategic Alternatives for Consumer Products Group
-- Servotronics to focus on core aerospace markets for continued growth --
ELMA, N.Y., March 30, 2023 /PRNewswire/ -- Servotronics, Inc. (NYSE American – SVT), a designer and manufacturer of servo-control components and other advanced technology products, today announced that the Company's Board of Directors has authorized the review of strategic alternatives for the Consumer Products Group (CPG) with a goal of enhancing shareholder value.
The Group consists of the Ontario Knife Company (OKC), a USA Heritage Brand that traces its origins to 1889, that currently markets a complete line of knives and tools for tactical, outdoor and home use. In 2022, CPG generated revenues of approximately $8.6 million.
"I want to start by acknowledging the incredible employees of the Ontario Knife Company and their tremendous efforts. We continue to believe that the business is set to grow and maintains high quality brand recognition in the market." said William F. Farrell Jr., Chief Executive Officer of Servotronics. "We are taking actions that are in line with our recently announced long-term strategy, and that centers around our core markets in the aerospace industry. The Ontario Knife Company will be a prime business addition to an organization that is more significantly invested in OKC's primary markets."
Servotronics has engaged Paramax Corporation as its financial advisor to evaluate potential alternatives. The Company noted that there can be no assurance that the Board's review process will result in any transaction or other alternative. There is no set timetable for the strategic review process, and Servotronics does not intend to provide updates until the Board approves a specific action.
The Company is composed of two groups – the Advanced Technology Group (ATG) and the Consumer Products Group (CPG). The ATG primarily designs, develops and manufactures servo controls and other components for various commercial and government applications (i.e., aircraft, jet engines, missiles, manufacturing equipment, etc.). The CPG designs and manufactures cutlery, bayonets, pocket knives, machetes and combat knives, survival, sporting, agricultural knives and other edged products for both commercial and government applications.
Forward Looking Statements
This news release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, the words "project," "believe," "plan," "anticipate," "expect" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to be materially different from future results expressed or implied by such forward-looking statements, and include, without limitation the following: (a) the possibility that a strategic transaction will not be completed on the terms and conditions, or on the timing, currently contemplated, and that it may not be completed at all, due to a failure to obtain or satisfy, in a timely manner or otherwise, required approvals and other conditions of closing necessary to complete such transaction or for other reasons; (b) the possibility of adverse reactions or changes in business relationships resulting from the announcement or completion of a strategic transaction; (c) risks relating to the Company's ability to retain and attract key personnel during the interim period; (d) market, operational and liquidity risks generally and relating specifically to any such transaction; and (e) other 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 America
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SOURCE Servotronics, Inc.