DE LEON SPRINGS, FL – Sparton Corp. has entered into a definitive agreement to sell its contract manufacturing unit, Manufacturing and Design Services, in a deal between private equity firms.

One Equity Partners will acquire the Sparton EMS business for an undisclosed amount from Cerebus Capital Management. The transaction is expected to close during the third quarter, subject to regulatory and customary closing conditions.

Following the divesture, Sparton will focus exclusively on its engineered defense products business: Engineered Components and Products. Sparton will be a defense supplier and will continue to design, develop, and produce proprietary engineered products for domestic and foreign defense and commercial needs.

Sparton is a partner with the US Navy, allied governments, and defense contractors. Sparton will remain a partner in its ERAPSCO joint venture, and Bill Toti, current president and CEO of Sparton ECP, will continue to lead the business under the Sparton brand as CEO of Sparton upon closing.

“This is an important milestone for both our defense products and contract manufacturing businesses, which have operated in separate industries with distinct long-term strategies,” said Toti. “Now, these leading platforms will be able to focus on their respective core strengths and capitalize on opportunities specific to each business. We wish our MDS colleagues all the best and look forward to watching their continued success in their next chapter.”

MDS manufactures complex electronic and electromechanical devices, including printed circuit card assemblies, subassemblies, full product assemblies, and cable/wire harnesses.

“We are extremely proud of the robust manufacturing platform we have built over the decades and are excited about our opportunities ahead,” said Paul Fraipont, president and CEO of Sparton MDS. “MDS has become a trusted partner to many leading businesses around the world, with a strong reputation for delivering high-quality, complex manufacturing solutions. Today’s announcement underscores the strength of our MDS business and our unwavering commitment to providing best-in-class services. We look forward to our partnership with OEP and leveraging their industry expertise as we reach new heights.”

Effective upon closing, the standalone MDS business will rebrand as Spartronics, and Fraipont will transition his same role and responsibilities to the new Spartronics business.

Sparton had a deal to be acquired by Ultra Electronics in 2017, but it fell apart under antitrust scrutiny by the US. The ODM/EMS was then acquired by Cerebus in March 2019 for about $181.5 million in cash.

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