Replies to post #244 on Best Long Term Stock Ideas

[fung_derf]

Probably over 20 years ago, someone was encouraging me to buy $AZO. I never understood the value.....I guess I should have listened.

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>>> TransDigm Group Incorporated (TDG) to Acquire Servotronics, Inc. (SVT) in Newly Announced Merger Deal


Motley Fool

by Vardah Gill

May 19, 2025


https://finance.yahoo.com/news/transdigm-group-incorporated-tdg-acquire-010704911.html


TransDigm Group Incorporated (NYSE:TDG) and Servotronics, Inc. (NYSEAmerican:SVT) have announced a definitive agreement under which Servotronics will become an indirect wholly owned subsidiary of TransDigm.

TransDigm Group Incorporated (NYSE:TDG) is mainly known for designing and supplying a broad range of specialized aerospace components used in nearly all commercial and military aircraft. The company plans to acquire all outstanding shares of Servotronics through a tender offer of $38.50 per share in cash. This offer values the deal at around $110 million, including certain tax benefits, and represents a premium of roughly 274% over Servotronics’ closing share price on May 16, 2025.

Once the tender offer is completed, TransDigm Group Incorporated (NYSE:TDG) intends to finalize the acquisition through a merger at the same price for any remaining shares. The transaction will be financed using TransDigm’s existing cash reserves and does not depend on external financing. Servotronics, Inc. (NYSEAmerican:SVT)’s Board of Directors has unanimously approved the deal.

This acquisition aligns with TransDigm Group Incorporated (NYSE:TDG)’s strategy of acquiring proprietary aerospace businesses with strong aftermarket potential. Over the past few years, the Cleveland-based company has pursued this approach with acquisitions including DART Aerospace for $360 million in 2022, Calspan for $725 million and CPI’s electron device division for $1.4 billion in 2023, and Raptor Scientific for $655 million in 2024. TDG has surged by nearly 15% since the start of 2025.

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