ELMA,
N.Y., May 25, 2023 /PRNewswire/ -- Servotronics,
Inc. (NYSE American – SVT) a designer and manufacturer of
servo-control components and other advanced technology products
today announced it has filed supplemental proxy materials,
including a presentation and continues soliciting proxies urging
stockholders to vote "FOR" all Company Nominees on the BLUE proxy
card at the 2023 annual meeting of shareholders, which will be held
virtually on June 9, 2023 at
9:00 am ET.
Below, please find a hyperlink to the shareholder presentation
filed with the SEC on May 23,
2023.
https://www.sec.gov/Archives/edgar/data/89140/000110465923063633/tm2316585d1_ex99-1.htm
We believe our Board nominees are fighting for the benefit of
all shareholders, implementing key changes to drive long-term
shareholder value, and have been critical in the progress made thus
far.
The dissident group has targeted Board members, Edward Cosgrove and Christopher Marks, based on their tenure on the
Board. What the dissidents miss is that these two directors
have been instrumental in implementing solutions to address a
difficult situation at Servotronics. Mr. Cosgrove and Mr. Marks,
from a minority position on the board, were instrumental in the
changes made over the past two years at Servotronics. Along with
improving corporate governance with accelerating the removal of the
"poison pill" provision, both Directors were directly involved in
refreshing the Board and identifying and recruiting William F. Farrell, Jr. as Servotronics' new
CEO. The current slate of Directors possesses experience and
expertise in the core aerospace end market, including both
engineering and technical expertise needed to sustainably grow
operations, as well as broader M&A and turnaround experience.
Finally, we note that the current Board consists of shareholders
who collectively own more than 19% of the Company's outstanding
stock, aligning the interests of our Board nominees with our
shareholder base.
We have implemented significant changes and the Board and
management team are focused on driving long-term value
creation.
As it stands today, Servotronics is a radically different
company than it was two years ago. Two-thirds of the Board has been
refreshed over the past 12 months, with an increased focus on
experience in operational improvements, governance, and the
Company's core aerospace market. In addition to the four new board
members, Servotronics has appointed both a new CEO
and a new CFO, with extensive experience in developing financial
strategies for sustainable operational growth. The changes over the
past twelve months work hand in hand with the new strategic vision
of the company, focusing on creating a culture of accountability,
integrity, transparency, and delivering superior long-term
shareholder returns. The strategic path to profitable growth, as
outlined in the presentation posted on April
4, 2023 (see the following link:
https://servotronics.com/wp-content/uploads/Servotronics_IRPresentation_04-04-2023.pdf),
was developed and designed with input from all Board members and
senior leadership, to attain mid-single digit CAGR in sales and a
return to pre-pandemic gross margins.
We believe the Star nominees are the wrong choice for
Servotronics' shareholders.
We believe the Star Equity Holdings alternatives are the wrong
choice for Servotronics. The nominees put forth by Star would add
little value to the Board of Directors or the operations of
Servotronics. While one nominee has "aerospace experience," we note
that experience was from more than two decades ago as this person
spent the past 20 years focused on healthcare. More importantly, we
recognize a need for deeper aerospace experience on the Board, but
we note that experience must include expertise in aerospace
manufacturing operations.
We believe performance drives results and Star's performance
raises questions regarding the quality of their nominees.
The dissident, and their nominees, have provided no direction or
specific details on their alternate vision for the future of the
Company beyond achieving a minority Board stake. Star attempts to
assert underperformance by the current Board and management team,
by comparing Servotronics with companies that have ~20x the market
cap of Servotronics serving very different markets. The
dissident asserts that the Company has "significantly
underperformed" their hand-selected "peer group" in a 3-year period
by delivering a 56.1% return on the value of our shares. The
dissident ignores the fact that during the same period, Star
Equity Holdings has lost 76.6% of its equity value. It is clearly
apparent that the dissident has not demonstrated good management
acumen with their own business, which is evident by the significant
destruction of shareholder value since their initial public
offering. We believe the dissident is focused on maximizing
the value of their own investment, and not maximizing the value for
all Servotronics shareholders.
We believe the Servotronics nominees represent the best
alternative to improving performance and generating long-term value
for all shareholders.
VOTE THE BLUE PROXY CARD TODAY "FOR" ALL SERVOTRONICS' DIRECTOR
NOMINEES
We urge you to use the BLUE proxy card to vote today "FOR" ALL of
Servotronics' nominees. Simply follow the easy instructions on the
BLUE proxy card to vote by Internet or by signing, dating and
returning the BLUE proxy card in the postage-paid envelope
provided. Please DISCARD all white proxy cards and materials sent
to you by Star Equity.
Shareholders who have any questions or need assistance voting
may contact the Company's proxy solicitors, Georgeson, LLC,
toll-free at (866) 767-8867.
ABOUT SERVOTRONICS
The Company is composed of two groups – the Advanced Technology
Group (ATG) and the Consumer Products Group (CPG). The ATG
primarily designs, develops and manufactures servo controls and
other components for various commercial and government applications
(i.e., aircraft, jet engines, missiles, manufacturing equipment,
etc.). The CPG designs and manufactures cutlery, bayonets, pocket
knives, machetes and combat knives, survival, sporting,
agricultural knives and other edged products for both commercial
and government applications.
FORWARD-LOOKING STATEMENTS
This news release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. When used in this release, the words "project,"
"believe," "plan," "anticipate," "expect" and similar expressions
are intended to identify forward-looking statements, although not
all forward-looking statements contain these identifying words.
Forward-looking statements involve numerous risks and uncertainties
which may cause the actual results of the Company to be materially
different from future results expressed or implied by such
forward-looking statements. There are a number of factors that will
influence the Company's future operations, including: uncertainties
in today's global economy, including political risks, adverse
changes in legal and regulatory environments, and difficulty in
predicting defense appropriations, the introduction of new
technologies and the impact of competitive products, the vitality
of the commercial aviation industry and its ability to purchase new
aircraft, the willingness and ability of the Company's customers to
fund long-term purchase programs, and market demand and acceptance
both for the Company's products and its customers' products which
incorporate Company-made components, the Company's ability to
accurately align capacity with demand, the availability of
financing and changes in interest rates, the outcome of pending and
potential litigation, the severity, magnitude and duration of the
COVID-19 pandemic, including impacts of the pandemic and of
businesses' and governments' responses to the pandemic on our
operations and personnel, and on commercial activity and demand
across our and our customers' businesses, and on global supply
chains, the ability of the Company to obtain and retain key
executives and employees and the additional risks discussed in the
Company's filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on
forward-looking statements, which reflect management's analysis
only as of the date hereof. The Company assumes no obligation to
update forward-looking statements, whether as a result of new
information, future events or otherwise.
SERVOTRONICS, INC. (SVT) IS LISTED ON NYSE
American
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SOURCE Servotronics, Inc.