Star Equity Fund advocates for Servotronics sale to TransDigm at 357% premium.

Star Equity Fund, an investment fund, repeatedly urged Servotronics to explore strategic alternatives, resulting in substantial returns for all shareholders. The fund owns approximately 6% of Servotronics' common stock. Servotronics has agreed to a tender offer with TransDigm, valuing the company at a 357% premium over its May 16 closing price. Star Equity Fund's advocacy is credited with unlocking shareholder value.

Servotronics, Inc. (NYSE American: SVT) has agreed to a tender offer with TransDigm Inc. (NYSE: TDG), valuing the company at a significant premium. The transaction, announced on June 30, 2025, involves a subsidiary of TransDigm acquiring all outstanding shares of Servotronics at $47.00 per share, representing a 357% premium over its May 16, 2025 closing price [1].

Star Equity Fund, LP, an investment fund that owns approximately 6% of Servotronics' common stock, has been instrumental in driving this transaction. The fund's advocacy, which included director nominations, press releases, and open letters to the company's board, led to several shareholder-friendly changes. These changes culminated in the March 2025 announcement that the board had commenced a review of strategic alternatives, ultimately resulting in the transaction [1].

The transaction will benefit all stakeholders, including employees and customers, as Star Equity Fund's portfolio manager, Jeff Eberwein, noted. The fund's efforts have led to substantial value creation for all SVT shareholders, including the company's ESOP [1].

Star Equity Fund, LP is an investment fund managed by Star Equity Holdings, Inc. It seeks to unlock shareholder value by engaging and collaborating with management teams across its portfolio companies [1].

References:

[1] https://finance.yahoo.com/news/star-equity-fund-successful-servotronics-123000951.html