Sparton Corp. [SPA] on Tuesday said it has acquired California-based Hunter Technology Corp. for $55 million in cash, expanding its footprint into the Northern California corridor and growing its military and aerospace business.
Illinois-based Sparton said the acquisition will add $80.5 million in annual sales. Sparton provides complex and sophisticated electromechanical devices and has capabilities in concept development, industrial design, design and manufacturing engineering, production and refurbishment. Its core markets are medical and biotechnology, military and aerospace, and industrial and commercial.
Hunter Technology is an electronic contract manufacturer specializing in military and aerospace applications. Sparton said it is one of the only suppliers in the Silicon Valley region providing engineering design, new product introduction and full-rate production manufacturing solutions working with major defense and aerospace companies, test and measurement suppliers, secure networking solution providers, and others.
“The addition of Hunter Technology meets the criteria of our growth strategy by providing further expansion regionally into Northern California, diversifying our customer base through both existing programs and a strong business development pipeline, increasing our engineering service capabilities and NPI offerings, and continuing to increase the number of complex sub-assembly and full device programs with Sparton,” Cary Wood, president and CEO of Sparton, said in a statement. “Additionally, they bring solid, long-term customer relationships that we believe will utilize Sparton’s expanded list of service offerings such as our low cost country footprint in Vietnam and full complement of engineering design capabilities.”
Sparton said the acquisition will put it close to its goal of $500 million in annual sales. The deal includes a potential $13 million earnout provision payable to Hunter based on sales in the coming year.
Hunter’s financial adviser on the deal is Lincoln International.