The Servotronics, Inc. Board of Directors authorized the review of strategic alternatives for the Consumer Products Group (CPG) with the goal of enhancing shareholder value.
The Group consists of the Ontario Knife Company, a USA Heritage Brand that traces its origins to 1889, that currently markets knives and tools for tactical, outdoor and home use. In 2022, CPG generated revenues of approximately $8.6 million.
“I want to start by acknowledging the incredible employees of the Ontario Knife Company and their tremendous efforts. We continue to believe that the business is set to grow and maintains high-quality brand recognition in the market,” said William F. Farrell Jr., CEO of Servotronics. “We are taking actions that are in line with our recently announced long-term strategy, and that centers around our core markets in the aerospace industry. The Ontario Knife Company will be a prime business addition to an organization that is more significantly invested in OKC’s primary markets.”
Servotronics engaged Paramax Corporation as its financial advisor to evaluate potential alternatives. The company noted that there could be no assurance that its Board’s review process would result in any transaction or other alternative. There is no set timetable for the strategic review process, and Servotronics does not intend to provide updates until the Board approves a specific action.