Market Overview

Sparton Corporation and Ultra Electronics USSI Joint Venture (ERAPSCO) Awarded $64.6M for U.S. Navy Sonobuoy Contracts

Share:

Sparton Corporation (NYSE:SPA) and Ultra Electronics Holdings
plc
(ULE) announce the award of subcontracts valued at $64.6 million
to their ERAPSCO joint venture, for the manufacture of sonobuoys for the
United States Navy. The award is a GFY18 ERAPSCO Indefinite Delivery
Indefinite Quantity (IDIQ) contract release for sonobuoy requirements
under ERAPSCO's five year contract. ERAPSCO will provide production
subcontracts in the amount of $30.3 million and $34.3 million to Ultra
Electronics USSI and Sparton DeLeon Springs, LLC respectively.
Production will take place at Ultra Electronics USSI's Columbia City, IN
facility and Sparton's DeLeon Springs, FL facility and is expected to be
completed by April 2020.

Simon Pryce, Chief Executive Officer of Ultra Electronics, commented: "I
am pleased that we have secured this significant contract to
provide continuing critical sensor capabilities to the U.S. Navy. This
contract underscores the increased focus on anti-submarine warfare and
our ability through ERAPSCO to provide a range of key technologies and
capabilities to support the U.S. Navy's continued commitment to this
important mission".

"Undersea warfare is a vital part of the defense of our nation and our
allies throughout the world," said Joe Hartnett, Interim President and
Chief Executive Officer of Sparton Corporation. "We are honored that the
Navy continues to rely on us to manufacture a product so fundamental to
that task."

Further information about Ultra

Ultra Electronics is a group of businesses which manage a
portfolio of specialist capabilities, generating highly differentiated
solutions and products in the defense & aerospace, security & cyber,
transport and energy markets by applying electronic and software
technologies in demanding and critical environments to meet customer
needs

Ultra has world-leading positions in many of its specialist capabilities
and, as an independent, non-threatening partner, is able to support all
of the main prime contractors in its sectors. As a result of such
positioning, Ultra's systems, equipment or services are often mission or
safety-critical to the successful operation of the platform to which
they contribute. In turn, this mission-criticality secures Ultra's
positions for the long term which underpins the superior financial
performance of the Group.

Ultra offers support to its customers through the design, delivery and
support phases of a program. Ultra businesses have a high degree of
operational autonomy where the local management teams are empowered to
devise and implement competitive strategies that reflect their expertise
in their specific niches. The Group has a small head office and
executive team that provide to the individual businesses the same agile,
responsive support that they provide to customers as well as formulating
Ultra's overarching, corporate strategy.

Across the Group's three divisions, Ultra operates in the following
eight market segments:

• Aerospace
• Communications
• C2ISR
• Infrastructure

Land
• Maritime
• Nuclear
• Underwater Warfare

About Sparton Corporation

Sparton Corporation (NYSE:SPA), now in its 119th year, is a provider of
complex and sophisticated electromechanical devices with capabilities
that include concept development, industrial design, design and
manufacturing engineering, production, distribution, field service and
refurbishment. The primary markets served are Medical & Biotechnology,
Military & Aerospace and Industrial & Commercial. Headquartered in
Schaumburg, Illinois, Sparton currently has thirteen manufacturing
locations and engineering design centers worldwide. Sparton's website
may be accessed at 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.

View Comments and Join the Discussion!