TransDigm Group Incorporated (NYSE:TDG) agreed to acquire Servotronics, Inc. (NYSEAM:SVT) from Paul Snyder III and other shareholder for $98.4 million on May 18, 2025. A cash consideration valued at $38.5 per share will be paid by TransDigm Group Incorporated. In case of termination of transaction, Servotronics will pay a termination fee of $5 million. Following the purchase of shares through the tender offer, TransDigm will complete the acquisition of Servotronics by acquiring all remaining shares not acquired in the offer through a merger at the same price as the tender offer. The acquisition will be funded with TransDigm's cash on hand and is not subject to any financing conditions. Under the terms of the merger agreement, the parties anticipate that TransDigm will commence a cash tender offer for all of the outstanding shares of Servotronics on or before June 9, 2025. On June 18, 2025, Servotronics shareholder has filed a complaint in state Supreme Court in Erie County seeking to block proposed acquisition with TransDigm Group Incorporated. Common stock of Servotronics will cease to trade on NYSE American and a notice of delisting with respect to shares of Servotronics is expected to be filed promptly.

The transaction is subject to approval of merger agreement by target board and minimum tender. The deal has been unanimously approved by the board of Servotronics.

As of May 29, 2025, the Offer Price (as defined in the Merger Agreement) was increased from $38.50 per share in cash to $47.00 per share in cash. In addition, the termination fee to be paid by the Company upon termination of the Amended Merger Agreement under certain circumstances was increased from $5 million to $12.5 million. Pursuant to the terms of the Amendment, TransDigm will be obligated to pay the Servotronics a reverse termination fee of $25 million upon termination of the Amended Merger Agreement under certain circumstances.

Michael C. Donlon, Esq of Bond, Schoeneck & King, PLLC acted as legal advisor for Servotronics, Inc. John Allotta and John Harrington of Baker & Hostetler LLP acted as legal advisor for TransDigm Group Incorporated. Houlihan Lokey, Inc. acted as financial advisor for Servotronics, Inc. Houlihan Lokey, Inc. acted as fairness opinion provider for Servotronics, Inc.

TransDigm Group Incorporated (NYSE:TDG) completed the acquisition of Servotronics, Inc. (NYSEAM:SVT) from Paul Snyder III and other shareholder on July 1, 2025. Each outstanding share of Servotronics' common stock that was not validly tendered in the tender offer will be converted into the right to receive an amount equal to the tender offer price.