(MENAFN- PR Newswire) 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.
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: ), 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.
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.
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
SOURCE Servotronics, Inc.