Servotronics Soars 22.26% on Revised Merger Deal

On May 29, 2025, Servotronics surged 22.26% in pre-market trading, marking a significant rise in its stock price.

Servotronics has announced an amendment to its merger agreement with TransDigm Inc., increasing the tender offer price to $47.00 per share in cash for all outstanding shares. This adjustment came after Servotronics received an unsolicited acquisition proposal from a third party. The company's Board of Directors evaluated the third-party proposal and determined it did not constitute a superior proposal under the amended merger agreement.

The competitive dynamic created by the third-party bid has strengthened shareholder value, as TransDigm's increased offer reflects the perceived value of Servotronics' specialized capabilities in the aerospace sector. This development aligns with the broader trend of consolidation in the aerospace components sector, where larger players seek to expand their product portfolios and supply chain integration.

While the amended agreement reflects increased shareholder value, the transaction still faces the standard regulatory approval process and other closing conditions. Shareholders should expect additional details in the forthcoming 8-K filing that will outline any modifications to termination provisions, timeline adjustments, or other material changes to the original merger agreement.