Latest news with #Servotronics
Associated Press
17 hours ago
- Business
- Associated Press
Askeladden Capital Announces AstroNova 'Town Hall' Forum
All AstroNova Stakeholders Invited to Meet and Interact with Askeladden's Board Candidates Askeladden Nominees Have Specific and Relevant Expertise to Execute Askeladden's Plan to Maximize Value Transdigm's Recently Raised Bid for Aerospace Components Company Servotronics Highlights Potential to Unlock Value at AstroNova with Better Governance FORT WORTH, TX / ACCESS Newswire / June 2, 2025 / Dear AstroNova stakeholders: I write to you as the founder and portfolio manager of Askeladden Capital (collectively, 'we,') which is AstroNova's largest shareholder, owning approximately 9.2% of the company on behalf of our clients. In an effort to improve AstroNova's performance for the benefit of shareholders, employees, and all other stakeholders, we have nominated five highly qualified individuals for election to AstroNova's Board of Directors at the company's Annual Meeting, scheduled for July 9, 2025. We invite you to join an Investor Forum where shareholders, employees, and all other interested parties can interact directly with our nominees. After a brief introduction and panel discussion of approximately 20 minutes, we will open up the call for Q&A. We will conduct this 'town hall' style meeting virtually via Zoom at 11:00 AM Eastern Time (10:00 AM Central Time) on Thursday, June 12, 2025. You can register here : Please contact Samir Patel via [email protected] if you have any trouble registering. Attendees will have the option to remain anonymous to all parties other than the host. Those who cannot attend live are also invited to email us with written questions that we will read and answer during the town hall as time permits. A recording of the call will subsequently be made available. We encourage candid and detailed questions - the more challenging the better - about our research, our plan, our nominees' backgrounds, and how we will work as a team to maximize the value of AstroNova for all. Please ask similar questions of the incumbents, then vote based on whose answers you find more compelling. Askeladden has researched AstroNova since 2016 and been a 5% shareholder since 2020. Since March, we have spoken to over 15 individuals, ranging from former employees to suppliers and other industry veterans, to deepen our understanding of the company. In the near future, we will share selected research findings with AstroNova shareholders. We believe AstroNova has many strengths, such as a large installed base and many talented employees. Unfortunately, we believe that these attractive qualities have been overwhelmed by poor governance and management by the incumbent Board, and CEO Greg Woods, which has harmed shareholders and employees alike. In FY2025, the company reported Adjusted EBITDA of $12.3 million, substantially below FY2024's $17.6 million and FY2025 original guidance of ~$21 million at the midpoint. [1] The company's May 2024 acquisition of MTEX should have further enhanced profitability - instead, the CEO and Board's decision to spend $18.7 million in cash and assume additional debt [2] to fund this acquisition harmed both shareholders and employees. The share price fell almost 50% over the ensuing year, [3] while employees have faced layoffs. [4] In FY2025, MTEX generated an operating loss of $16.9 million, including a goodwill impairment of $13.4 million, and the company subsequently discontinued 70% of MTEX's product portfolio. [5][6] As a result of the lower earnings and increased debt due to the MTEX acquisition, the company breached its debt covenants and suffered an event of default under its credit facility during the quarter ended January 31, 2025 (thus forcing AstroNova to seek a waiver from its lender, which was subsequently granted). [7] While CEO Greg Woods retains his job despite this self-inflicted debacle, many AstroNova employees were not so lucky: on March 20, 2025, the company announced 'the reduction of approximately 10% of the Company's global workforce, primarily in the PI [Product Identification] segment.' [8] Through no fault of their own, rather than enjoying the profit-sharing and career growth opportunities that a well-managed company should provide, 10% of AstroNova employees lost their jobs. Despite these missteps, incumbents appear to be doubling down on this failed strategy, and have refused to engage with Askeladden's efforts to improve the company's performance. We recently published a 20-page document including our specific, research-based plan for improving AstroNova's performance, as well as relevant background information on the company's performance and governance. We believe that our nominees have specific and relevant qualifications to address the current challenges faced by AstroNova. Below is their biographical information. Shawn Kravetz. Mr. Kravetz has relevant experience as a change agent under similar circumstances. He joined the Board of Nevada Gold & Casinos, Inc. as a large shareholder frustrated by performance, including a recent acquisition. He served from 2016 until Nevada Gold was sold in 2019, including Chairman of the Corporate Governance and Nominating Committee. Mr. Kravetz was recently nominated for election to the Board of publicly traded Spruce Power Holding Corporation by the company's Nominating and Governance Committee. [9] Jeff Sands. As Mr. Sands discusses in his book, 'Corporate Turnaround Artistry: Fix Any Business in 100 Days,' he has successfully used techniques included in our plan to restore profitability at numerous businesses, including some merely weeks away from lender-forced liquidation. He has won the Turnaround Management Association 'Turnaround of the Year' award three times. Mr. Sands has successfully worked with businesses such as a $100M supplier of aerospace components to Boeing (~2x the size of AstroNova's Aerospace segment), as well as complex and capital-intensive businesses such as steel and pharmaceuticals. Given AstroNova's significant recent decline in profitability and elevated inventory balances, Mr. Sands' experience in driving rapid cash flow improvement is extremely relevant. Mr. Sands has been involved in the sale of numerous private companies. Ryan Oviatt. Mr. Oviatt has extensive experience - as CFO, CEO, and Board Member of Profire - of managing an industrial products business for margin and cash flow in the highly cyclical energy market. Mr. Oviatt managed a team that used techniques such as automation of manual processes and key administrative functions, customer outreach, and performance-based incentive compensation programs designed to instill a sense of ownership throughout the company. Mr. Oviatt helped lead the successful sale of Profire to a strategic public-company buyer, CECO Environmental. After multiple rounds of negotiation, Profire successfully achieved a final offer price 27.5% higher than CECO's original offer, and an all-cash deal rather than the original offer of 75% cash and 25% stock. This final offer represented a 60.3% premium to Profire's volume-weighted average share price over the 30 days prior to the Board approving the merger. [10] Boyd Roberts. Mr. Roberts was the youngest member of the executive team at Franklin Covey (FC) and has integrated and substantially grown an acquired division, with ownership of full P&Ls and high employee net promoter scores. Mr. Roberts has extensive experience with Franklin Covey's customer-focused recurring-revenue business model. Mr. Roberts is fluent in Portuguese. His linguistic and cultural strengths uniquely qualify him to address the challenging MTEX acquisition, which we believe has suffered due to a cultural mismatch between the labor force at its facility in Porto in northern Portugal, and AstroNova's American business culture. [11] Samir Patel. As AstroNova's largest shareholder, who has researched the business since 2016, I am deeply familiar with the company's ongoing (flawed) strategy, contrary to the company's misleading assertion that the company will be damaged by a new Board 'unacquainted with recent decision-making .' [12] I will ensure that AstroNova's operational and capital allocation decisions consistently maximize shareholder value. As a point of comparison on what AstroNova could potentially be worth with better governance, we note that Servotronics (SVT), a global designer and manufacturer of servo controls and other components for aerospace and defense applications, announced a merger with large aerospace manufacturer Transdigm (TDG) for $110 million in cash on May 19, 2025, and subsequently raised the offer price by ~22% from $38.50 to $47.00 after Servotronics received another offer from a competing bidder, suggesting significant interest in the business at that valuation. [13] Even the original offer price - let alone the subsequent increase - is almost identical to AstroNova's entire enterprise value as of May 20, 2025. [14][15] At the original offer price, the all-cash transaction represented a 274% premium to Servotronics' share price at the prior close. For the fiscal year 2024, Servotronics generated $44.9 million in revenue with only $8.2 million in gross profit and less than $1 million in Adjusted EBITDA. [16] Meanwhile, for its FY2025 which ended a month later, AstroNova's Test and Measurement segment (subsequently renamed Aerospace) generated a slightly higher $48.9 million in revenues with a much higher $11.1 million in segment operating profit. It seems reasonable to assume that a buyer evaluating these two businesses side by side would assign a higher valuation to AstroNova Aerospace given its modestly higher revenues and substantially higher profits. In other words (and apart from any tax considerations), that would imply that if AstroNova Aerospace was sold at a similar value to Servotronics' original agreement - let alone the higher subsequent agreement raising the offer amount by over 20% - AstroNova could pay off all its debt and return cash to shareholders equivalent to roughly the current share price. Shareholders would then still own the entire Product Identification segment, with slightly over $100 million in annual revenues generated each of the past three fiscal years, which is clearly worth substantially more than the zero or even negative value implied if Servotronics' valuation is applied to AstroNova Aerospace. [17] While the Servotronics transaction is merely one data point, it demonstrates the potential value if AstroNova implements the strategy we have developed - which we recently presented in our public plan - rather than doubling down on a strategy promoted by the value-destroying incumbent CEO and Board. In the more than eleven years from February 1, 2014 (when Mr. Woods became CEO) through May 15, 2025 (the record date of this year's Annual Meeting), AstroNova shares have experienced a total return of negative 28%. [18] You can find further information about the upcoming board election, scheduled for July 9, 2025, at the AstroNova page on the Askeladden Capital website : These documents will also be available at no cost at . As stated previously, the 'town hall' will occur virtually via Zoom at 11:00 AM Eastern Time (10:00 AM Central Time) on Thursday, June 12, 2025. You can register here : Please feel free to reach out to me with any questions or comments, at [email protected] or (682) 553-8302. We look forward to earning your vote. Cordially, Samir Patel Founder and Portfolio Manager, Askeladden Capital Samir Patel, Askeladden Capital Management LLC, Jeff Sands, Shawn Kravetz, Ryan Oviatt and Boyd Roberts (collectively the 'Participants') filed a definitive proxy statement and accompanying proxy card with the SEC on May 20, 2025, as amended on May 21, 2025, to be used in soliciting proxies in connection with the 2025 annual meeting of shareholders (the 'Annual Meeting') of AstroNova, Inc. (the 'Company'). All shareholders of the Company are advised to read the Proxy Statement and other documents related to the solicitation of proxies, each in connection with the Annual Meeting, by the Participants, as they contain important information, including additional information related to the Participants, including a description of their direct or indirect interests by security holdings or otherwise. The Proxy Statement and an accompanying GOLD proxy card will be furnished to some or all of the Company's stockholders and is, along with other relevant documents, available at no charge on the SEC website at or by contacting Samir Patel at 1452 Hughes Road, Suite 200 #582, Grapevine, TX, 76051. [1] Q4 FY2024 and Q4 FY2025 Earnings Release. [2] FY2025 Form 10-K filed April 15, 2025. [3] Stock price data from YCharts. [4] FY2025 Form 10-K, page 24. [5] AstroNova Form 10-K for FY2025. Impairment discussed on page 11; purchase price discussed on page 15. [6] MTEX Acquisition Announcement and Conference Call Transcript (May 9, 2024) and FY2025 Form 10-K filed April 15, 2025. [7] Form 8-K Earnings filed March 21, 2025. [8] FY2025 Form 10-K, page 24. [9] Spruce Power Holding Corp Definitive Proxy, page 10. [10] Profire Energy (PFIE) SC14D9 dated December 3, 2024. Section 'Background of the Offer and the Merger' on pages 9 - 16. [11] 'The American work culture focuses on ambition… in Portugal, there is a more collective approach to work and less pressure… [people] tend to place greater importance on personal well-being, family time, and life outside of work.' LXUS (Corporate Relocation service provider.) [12] Letter accompanying AstroNova's definitive proxy statement, filed May 19, 2025. [13] 'TransDigm raises offer price for Servotronics to $47/share.' Seeking Alpha. May 29, 2025. [14] 'Transdigm to Acquire Servotronics For About $110 million.' Nasdaq. May 19, 2025. [15] Per data sources such as Seeking Alpha, ALOT shares closed at $9.12 on May 20, 2025. The company's recent definitive proxy statement, filed May 19, 2025, discloses a recent sharecount of approximately 7.6 million shares, for a market cap of approximately $69 million as of that date. AstroNova's Form 10-K filed April 15, 2025 discloses $20.9 million outstanding on the revolving credit facility, $6.1 million in current long-term debt, $0.6 million in short-term debt, and $19 million in long-term debt, for a total of $46.6 million in gross debt. The same Form 10-K disclosed $5 million of cash and equivalents, making net debt $41.6 million. The sum of $41 million and $69 million is approximately $110 million. [16] Form 10-K for Servotronics SVT filed March 17, 2025. [17] AstroNova Form 10-K for FY2025, filed April 15, 2025. Page 24. [18] Data from YChart Samir Patel [email protected] (682) 553-8302 SOURCE: Askeladden Capital Management LLC press release
Yahoo
3 days ago
- Business
- Yahoo
Servotronics Deal Rewrite Ignites Shareholder Value
Servotronics, Inc. (NYSE:SVT) announced that the company, along with TransDigm Group Incorporated (NYSE:TDG), has made adjustments to the Agreement and Plan of Merger, raising the tender offer price to $47 per share from $38 per share in cash for all outstanding shares. This decision was taken soon after the company received an unsolicited takeover proposal from a third party. While the external offer is not the one that can be prioritized, it signals enhanced shareholder value. A close-up of a scientist's hands manipulating a high-powered microscope to view cells. The servo-control components provider, encompassing manufacturing capabilities for aircraft, jet engines, and missiles, signifies a specialized acquisition prey in the aerospace supply chain. Although the transaction still faces the regulatory approval process and closing conditions, among other challenges, the acquisition perfectly syncs with TransDigm's portfolio expansion plans. This is a major factor in the current stock movement, with investors reacting positively to this update, translating to a stock rise. Now that the news is out, investors are staying tuned for the next move, hoping the tender offer delivers even more attractive returns. SVT has surged by nearly 328% since the start of 2025. While we acknowledge the potential of SVT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SVT and that has 100x upside potential, check out our report about the READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
Yahoo
4 days ago
- Business
- Yahoo
Servotronics Deal Rewrite Ignites Shareholder Value
Servotronics, Inc. (NYSE:SVT) announced that the company, along with TransDigm Group Incorporated (NYSE:TDG), has made adjustments to the Agreement and Plan of Merger, raising the tender offer price to $47 per share from $38 per share in cash for all outstanding shares. This decision was taken soon after the company received an unsolicited takeover proposal from a third party. While the external offer is not the one that can be prioritized, it signals enhanced shareholder value. A close-up of a scientist's hands manipulating a high-powered microscope to view cells. The servo-control components provider, encompassing manufacturing capabilities for aircraft, jet engines, and missiles, signifies a specialized acquisition prey in the aerospace supply chain. Although the transaction still faces the regulatory approval process and closing conditions, among other challenges, the acquisition perfectly syncs with TransDigm's portfolio expansion plans. This is a major factor in the current stock movement, with investors reacting positively to this update, translating to a stock rise. Now that the news is out, investors are staying tuned for the next move, hoping the tender offer delivers even more attractive returns. SVT has surged by nearly 328% since the start of 2025. While we acknowledge the potential of SVT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SVT and that has 100x upside potential, check out our report about the READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
Associated Press
7 days ago
- Business
- Associated Press
SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates INZY, TXNM, SVT, PTIX on Behalf of Shareholders
NEW YORK, May 27, 2025 (GLOBE NEWSWIRE) -- Halper Sadeh LLC, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to: Inozyme Pharma, Inc. (NASDAQ: INZY)'s sale to BioMarin Pharmaceutical Inc. for $4.00 per share. If you are an Inozyme shareholder, click here to learn more about your rights and options . TXNM Energy, Inc. (NYSE: TXNM)'s sale to Blackstone for $61.25 per share in cash. If you are a TXNM shareholder, click here to learn more about your legal rights and options . Servotronics, Inc. (NYSE: SVT)'s sale to TransDigm Group Incorporated for $38.50 per share in cash. If you are a Servotronics shareholder, click here to learn more about your rights and options . Protagenic Therapeutics, Inc. (NASDAQ: PTIX)'s merger with Phytanix Bio Inc. Upon completion of the proposed transaction, Protagenic shareholders are expected to own approximately 35% of the combined company. If you are a Protagenic shareholder, click here to learn more about your rights and options . Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures and information concerning the proposed transaction, or other relief and benefits on behalf of shareholders. We would handle the action on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses. Shareholders are encouraged to contact the firm free of charge to discuss their legal rights and options. Please call Daniel Sadeh or Zachary Halper at (212) 763-0060 or email [email protected] or [email protected] . Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors. Attorney Advertising. Prior results do not guarantee a similar outcome. Contact Information: Halper Sadeh LLC Daniel Sadeh, Esq. Zachary Halper, Esq. One World Trade Center 85th Floor New York, NY 10007 (212) 763-0060 [email protected] [email protected]
Yahoo
23-05-2025
- Business
- Yahoo
TransDigm Agrees to Buy Servotronics for $110M, Expands Portfolio
TransDigm Group, Inc. TDG revealed that it signed a definitive merger agreement with Servotronics, Inc., resulting in the latter becoming an indirect, fully-owned subsidiary of TransDigm. The transaction is worth nearly $110 million in cash, including certain tax cash consideration reflects a 274% premium over Servotronics' closing share price on May 16, 2025. Servotronics serves the global aerospace and defense industry through the supply of its servo valves, which play a key role in supporting the manufacturing of commercial airplanes and business jets. It also provides essential components for various defense Servotronics holding long-term contracts with prime defense contractors of the U.S. Government for military programs and original equipment manufacturers (OEM) for commercial programs, its acquisition should help TDG expand its customer base, product offerings and market share in both the commercial aerospace OEM and defense industries. This, in turn, should bolster TransDigm's revenue generation prospects, profitability and operational efficiency in the coming the fact that a significant portion of Servotronics' sales is tied to aftermarket services within the commercial aerospace sector, this merger aligns with TransDigm's long-term strategy of acquiring highly developed components with strong aftermarket demand. The aerospace and defense industry has been witnessing a significant increasein mergers and acquisitions lately due to several factors like cost-reduction goals, portfolio diversification, achieving economies of scale, and enhancing operational efficiency for long-term growth. Through these transactions, industry players aim to strengthen their position in high-margin aftermarket services, tackle increasing performance and pricing demands from OEMs, and change geopolitical dynamics and heightened industry latest decision to acquire Servotronics seems to have been motivated by some or all of the aforementioned aerospace-defense companies that have recently indulged in acquisition deals are as January 2025, Curtiss-Wright Corporation CW announced the acquisition of Ultra Energy for $200 million in cash. The buyout should expand Curtiss-Wright's portfolio with highly complementary, crucial measurement and control solutions for upgrading current commercial nuclear power plants and designing new and advanced power plants, such as compact modular has a long-term (three to five years) earnings growth rate of 12%. The Zacks Consensus Estimate for its 2025 sales implies an improvement of 8.3%.In February 2025, HEICO Corporation HEI declared that its Flight Support Group acquired 90% of Millennium International, a leader in providing business and regional jet avionics repair has a long-term earnings growth rate of 17%. The Zacks Consensus Estimate for its fiscal 2025 sales implies an improvement of 11.4%.In February 2025, Teledyne Technologies, Inc. TDY announced that it completed the acquisition of some selected aerospace and defense electronics businesses from Excelitas Technologies Corp. for nearly $710 has a long-term earnings growth rate of 9.9%. The Zacks Consensus Estimate for its 2025 sales implies a year-over-year improvement of 6.2%. In the past six months, shares of TransDigm have gained 11.7% compared with the industry's growth of 1.3%. Image Source: Zacks Investment Research TDG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transdigm Group Incorporated (TDG) : Free Stock Analysis Report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report Curtiss-Wright Corporation (CW) : Free Stock Analysis Report Heico Corporation (HEI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
