-- The Board of Directors and Management
Remain Committed to Maximizing Shareholder Value by Executing the
Company's Strategic Plan --
ELMA,
N.Y., Nov. 16, 2022 /PRNewswire/ --
Servotronics, Inc. (NYSE American – SVT) a designer and
manufacturer of servo-control components and other advanced
technology products today responds to recent claims from Star
Equity Holdings, Inc. ("Star Equity") about its indication of
interest to combine with Servotronics.
Beginning in July 2022 the
Servotronics Leadership Team has been developing a strategic plan
designed to increase long-term shareholder value that is focused on
strengthening the corporate culture, delivering quality products on
time, growing the business in existing and new markets, and
investing in the Company and employees. This plan was
presented to the Board of Directors and approved in mid-October.
The Board and Leadership Team believe that the actions taken as a
result of these efforts will provide considerable value to all
stakeholders. Of note, the Indication of Interest from Star
Equity was received on October 20,
2022, one day after the Board reviewed and approved the
strategic plan.
Following receipt of the Indication of Interest from Star
Equity, the Servotronics Board conducted a careful and thorough
review of the matter. Multiple special meetings with the full
Board were held in which relevant information was gathered and
reviewed. In addition, the Officers, additional Management
Team members and external advisors were consulted. Following
this thorough review, the Servotronics Board of Directors responded
to Star Equity on November 2, 2022 by
noting that "the Board unanimously concluded that a potential
transaction as referenced in the indication of interest carries
significant risks and is not in the best interests of our
shareholders."
Additionally, the Company has endeavored to improve its investor
relations program through more frequent and transparent
communications. As part of this effort, the Servotronics CEO sent
an open letter to stakeholders on November
1 following the Board's approval of the Company's strategic
direction. This letter outlined the Company's strong
foundation for long-term value generation, governance changes
designed to increase stakeholder confidence, and commitment to
further investment in both the Company and its employees.
Further updates on the strategic plan and its execution are
anticipated beginning in early 2023. These communications, which
were in process well before Star Equity's unsolicited letter, will
allow for meaningful updates and increased transparency to all
stakeholders.
Furthermore, earlier this year the six-person Servotronics Board
of Directors saw the appointment of a new CEO, two new independent
directors, and a non-executive Board Chair. This group
understands its responsibility to the shareholders and believes it
exercised its fiduciary duties fairly and appropriately in this
matter.
At this time the Board of Directors and Management team of
Servotronics are committed to executing on the Company's plan of
delivering superior long-term results to shareholders.
ABOUT SERVOTRONICS
The Company is composed of two groups – the Advanced Technology
Group (ATG) and the Consumer Products Group (CPG). The ATG
primarily designs, develops and manufactures servo controls and
other components for various commercial and government applications
(i.e., aircraft, jet engines, missiles, manufacturing equipment,
etc.). The CPG designs and manufactures cutlery, bayonets, pocket
knives, machetes and combat knives, survival, sporting,
agricultural knives and other edged products for both commercial
and government applications.
FORWARD-LOOKING STATEMENTS
This news release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. When used in this release, the words "project,"
"believe," "plan," "anticipate," "expect" and similar expressions
are intended to identify forward-looking statements, although not
all forward-looking statements contain these identifying words.
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, the ability of the Company to obtain and retain key
executives and employees 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.