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Sparton Corporation Closes Sale of New Mexico Property

Dépèche transmise le 15 février 2011 par Business Wire

SCHAUMBURG, Ill.--(BUSINESS WIRE)--Sparton Corporation (NYSE: SPA) has announced the closing of the sale of its New Mexico property as of February 11, 2011. Sparton ceased operations at this location in 2008 as part of the turnaround actions that facilitated the Company’s return to profitability.

“We are pleased to have closed the sale of our last idle property as the proceeds of the sale further strengthen our balance sheet and will be used to fund our future strategic growth initiatives; specifically, mergers & acquisitions, internal product research & development, and enhanced business development efforts.”

As previously announced, on December 8, 2010 Sparton’s wholly owned subsidiary, Sparton Technology, Inc., entered into an agreement for the sale of property located at 8500 Bluewater Road NW, Albuquerque, New Mexico. After reductions based on property inspections, due diligence and commissions, the final purchase price was reduced from $4.5 million to approximately $4.2 million.

Cary Wood, President & CEO of Sparton commented, “We are pleased to have closed the sale of our last idle property as the proceeds of the sale further strengthen our balance sheet and will be used to fund our future strategic growth initiatives; specifically, mergers & acquisitions, internal product research & development, and enhanced business development efforts.”

About Sparton Corporation

Sparton Corporation (NYSE:SPA), now in its 111th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, and field service. The primary markets served are in the Medical Device, Defense & Security Systems, and Electronic Manufacturing Services industries. Headquartered in Schaumburg, IL, Sparton currently has five manufacturing locations worldwide. Sparton's Web site may be accessed at http://www.sparton.com.

Safe Harbor and Fair Disclosure Statement

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: To the extent any statements made in this release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties, including the difficulty of predicting future results, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in Sparton's filings with the Securities and Exchange Commission (SEC). The matters discussed in this press release may also involve risks and uncertainties concerning Sparton's services described in Sparton's filings with the SEC. In particular, see the risk factors described in Sparton's most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.