Star Equity Fund says Servotronics campaign leads to acquisition by TransDigm

Star Equity Fund, owner of approximately 6% of the common stock of Servotronics (SVT), comments on Servotronics’ agreement with TransDigm (TDG), under which a subsidiary of TransDigm will complete a tender offer to acquire all of the outstanding shares of Servotronics at $47.00 per share in an all-cash transaction. This Transaction values SVT at a 357% premium over its May 16, 2025 closing price, one trading day prior to the Transaction announcement. The company said, “In response to sustained pressure from our campaign, which included director nominations in 2022 and 2023, as well as press releases, SEC filings, and open letters to the Company’s Board of Directors since 2022, the Board took several shareholder-friendly steps we believe it would not have taken on its own. These steps, which culminated in the March 2025 announcement that the Board had commenced a review of strategic alternatives, resulting in the Transaction, and include: The addition of new independent directors and significant shareholders Evan Wax and Brent Baird to the Board. The termination of the Company’s poison pill and the resignation of non-qualified directors. The August 2023 divestiture of the Company’s non-core Consumer Products division. These significant changes, driven by our shareholder advocacy campaign, ultimately resulted in SVT’s agreement with TransDigm. From the outset, we maintained that SVT’s shares were significantly undervalued and that the intrinsic value Servotronics offered to a strategic buyer far exceeded its trading price over its many years as a standalone public company. This Transaction, as well as the high level of interest from numerous parties during the Company’s strategic review process, ultimately validated our view.”