-- Transaction, structured as an asset sale,
achieves key step in Company's strategic plan --
ELMA,
N.Y., Aug. 3, 2023 /PRNewswire/ -- Servotronics,
Inc. (NYSE American – SVT), a designer and manufacturer of
servo-control components and other advanced technology products,
today announced it has closed the sale of assets associated with
its Ontario Knife Company (OKC) business to Marion, Virginia based Blue Ridge Knives, Inc.
(BRK).
"We are pleased to take another step forward in our strategic
plan with the sale of the Ontario Knife Company's assets. We
believe this sale represents the best option for the business, and
we believe that Blue Ridge Knives will uphold OKC's
longstanding brand and quality commitments," said Servotronics
Chief Executive Officer William F. Farrell,
Jr. "As part of our review of strategic alternatives, we
have decided to wind down the business of our Consumer Products
Group and dedicate our focus and resources to growing our Advanced
Technology Group."
Phil Martin, President of Blue
Ridge Knives, Inc., commented, "We are excited to add the
longstanding heritage and brands of Ontario Knife Company to the
BRK portfolio. The combination of OKC and our extensive dealer
network provides considerable opportunities to grow our business
and enhance our position in the tactical, outdoor and hunting
markets."
Servotronics sold substantially all inventory, intellectual
property, tangible personal property and goodwill of the Ontario
Knife Company to Blue Ridge Knives for an aggregate purchase price
of $2.1 million, subject to a
post-closing adjustment based on inventory values. The company
plans to use the funds to invest in organic growth initiatives
within its core Advanced Technology Group.
ABOUT SERVOTRONICS
Servotronics designs, develops and manufactures servo controls
and other components for various commercial and government
applications including aircraft, jet engines, missiles,
manufacturing equipment and other aerospace applications at its
operating facilities in Elma and
Franklinville, New York.
FORWARD-LOOKING STATEMENTS
This news release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements the Company makes regarding expected
operating results, the utilization of production resources and
liquidity to fund its business operations. Forward-looking
statements involve numerous risks and uncertainties which may cause
the actual results of the Company to be materially different from
future results expressed or implied by such forward-looking
statements. There are a number of factors that will influence the
Company's future operations, including: uncertainties in today's
global economy, including political risks, adverse changes in legal
and regulatory environments, and difficulty in predicting defense
appropriations, the introduction of new technologies and the impact
of competitive products, the vitality of the commercial aviation
industry and its ability to purchase new aircraft, the willingness
and ability of the Company's customers to fund long-term purchase
programs, and market demand and acceptance both for the Company's
products and its customers' products which incorporate Company-made
components, the Company's ability to accurately align capacity with
demand, the availability of financing and changes in interest
rates, the outcome of pending and potential litigation, the
severity, magnitude and duration of the COVID-19 pandemic,
including impacts of the pandemic and of businesses' and
governments' responses to the pandemic on our operations and
personnel, and on commercial activity and demand across our and our
customers' businesses, and on global supply chains and the
additional risks discussed in the Company's filings with the
Securities and Exchange Commission. Readers are cautioned not to
place undue reliance on forward-looking statements, which reflect
management's analysis only as of the date hereof. The Company
assumes no obligation to update forward-looking statements, whether
as a result of new information, future events or otherwise.
SERVOTRONICS, INC. (SVT) IS LISTED ON NYSE
American
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SOURCE Servotronics, Inc.