Sparton To Be Acquired By Cerberus For $18.50/shr In Cash; Stock Surges

(RTTNews) - Sparton Corp. (SPA) said that it agreed to be acquired by an affiliate of Cerberus Capital Management L.P. for $18.50 per share in cash. The $18.50 per share consideration represents a premium of about 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 is expected to close in the first calendar quarter of 2019. The deal 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.

In the Wednesday pre-market trade, SPA is currently trading at $18.29, up $5.17 or 39.41 percent.