Lowenstein Sandler is representing longtime client Cerberus Capital Management, L.P. (Cerberus) in the acquisition of Sparton Corporation (Sparton) (NYSE:SPA) by a Cerberus affiliate. Cerberus is a global leader in alternative investing with over $35 billion in assets across complementary credit, private equity, and real estate strategies. Sparton 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.
Under the terms of their agreement, Cerberus will acquire all outstanding shares of Sparton’s common stock for $18.50 per share in cash. The $18.50 per share consideration represents a premium of approximately 41% over Sparton’s closing share price on December 11, 2018. The Sparton Board of Directors has unanimously approved the agreement and recommends that the Company’s shareholders approve the transaction. The transaction, which is subject to the receipt of Sparton shareholder approval, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary closing conditions, is expected to close in the first calendar quarter of 2019.
Lowenstein Sandler served as lead counsel and M&A counsel to Cerberus. The Lowenstein team included Robert G. Minion and lawyers from these practices: Mergers & Acquisitions: Marita A. Makinen, Sabrina Cua, Matthew Tippy, Lauren E. Killeen, Lauren M. Troeller; Antitrust/Competition: Jeffrey Blumenfeld, Jack Sidorov, Jeffrey M. Shapiro; Intellectual Property Litigation: Matt Savare, Nicholas G. Mehler, Bryan Sterba; Real Estate: Stuart S. Yusem, Alex H. Rosenthal; Employee Benefits & Executive Compensation: Christine Osvald-Mruz, Megan Monson; Environmental Law & Litigation: Norman W. Spindel, Allison Gabala; Tax: Michael Walutes; FDA Regulatory: James C. Shehan; Privacy & Cybersecurity: Mary J. Hildebrand, Manali Joglekar.