Sparton Corp., an EMS provider that supplies electromechanical and electronic devices and subassemblies to the medical device industry, has acquired Delphi Medical Systems. Sparton bought Delphi, a contract manufacturing firm, in an $8 million all-cash transaction. Schaumburg, IL–based Sparton estimates that the acquisition will increase its annual revenue by $32 million.
“The addition of this business meets the criteria of our growth strategy by providing expansion into the therapeutic device market and diversifying our customer base, while also expanding our geographic reach into the western United States,” says Cary Wood, Sparton’s president and CEO.
The company also expects the acquisition to enhance its business development activities, thanks to additional personnel and the manufacturing representative relationships that come with them.
Delphi specializes in the manufacture of finished devices for the therapeutic market, including blood separation equipment, spinal surgery products, and 3-D eye-mapping devices. The firm also offers engineering and manufacturing support.
“In the last 18 months, Sparton has endured extensive restructuring activities by focusing its efforts primarily on operational and financial improvements that have resulted in a return to profitability. This acquisition marks a major milestone in the turnaround as we shift our focus to future growth,” Wood adds. “As we initiate Sparton’s strategic growth plan, this acquisition immediately allows access to new markets, geographies, and a diversified product offering. We look forward to the efficient integration of operations and expect this acquisition to improve profitability and enhance shareholder value.”
The transaction is expected to close by mid-August.