Servotronics Completes Sale of Ontario Knife Company Assets to Blue Ridge Knives, Inc.

— This transaction was realized in the form of an asset sale and is a key step in the company’s strategic plan —

Elma, New York, August 3, 2023 /PRNewswire/ — Servotronics, Inc. (NYSE: SVT), a designer and manufacturer of servo control components and other advanced technology products, today announced that it has completed the sale of assets related to its Ontario Knife Company (OKC) business to Marion, Virginia Headquartered at Blue Ridge Knives, Inc. (BRK).

“We are pleased to take another step forward in our strategic plan by selling the assets of Ontario Knife Company. We believe this sale is the best option for the business and we are confident that Blue Ridge Knives will adhere to OKC’s Long-term brand and quality commitment,” said Servotronics CEO William F. Farrell Jr. “As part of our review of strategic alternatives, we have decided to wind down the Consumer Products Group business and direct our focus and resources to growing our Advanced Technologies Group.”

Phil MartinPresident of Blue Ridge Knives, Inc. commented, “We are pleased to add the long tradition and brand of Ontario Knife Company to the BRK product portfolio. The combination of OKC and our extensive dealer network provides the opportunity to grow and enhance our business.” Huge opportunity.

Servotronics sells substantially all of Ontario Knives’ inventory, intellectual property, tangible personal property and goodwill to Blue Ridge Knives for an aggregate purchase price of $2.1 million, adjusted after checkout based on inventory value. The company plans to use the funds to invest in organic growth initiatives within its core Advanced Technologies group.

About Servo Electronics

Servotronics designs, develops and manufactures servo controls and other components for a variety of commercial and government applications, including aircraft, jet engines, missiles, manufacturing equipment and other aerospace applications. elma and Franklinville, New York.

forward-looking statements

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements by the Company regarding expected operating results, utilization of production resources and liquidity to fund its business operations. Forward-looking statements involve a number of risks and uncertainties that could cause the Company’s actual results to differ materially from future results expressed or implied by such forward-looking statements. There are many factors that will affect the company’s future operations, including: today’s global economic uncertainty, including political risks, adverse changes in the legal and regulatory environment, difficulty predicting defense funding, the introduction of new technologies and affecting the competitiveness of products, commercial aviation the vitality of the industry and its ability to purchase new aircraft, the willingness and ability of the Company’s customers to fund long-term purchasing programs, the market demand for and acceptance of the Company’s products and its customers’ products into the components manufactured by the Company, the Company’s ability to accurately align production capacity with demand, The availability of financing and changes in interest rates, the outcome of pending and potential litigation, the severity, scale and duration of the COVID-19 pandemic, including the epidemic and the business and government response to the epidemic, including our operations and personnel, our and commercial activities and needs of client businesses, global supply chains and other risks and transaction committees discussed in the Company’s filings with securities firms. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s analysis only as of the date of this report. The Company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.

SERVOTRONICS, INC. (SVT) is listed on the New York Stock Exchange American Exchange

SOURCE Servotronics, Inc.

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