# EDGAR Filing Document

**Accession Number:** 0000089140
**File Stem:** 0001193125-25-141127
**Filing Date:** 2025-6
**Character Count:** 45993
**Document Hash:** 1b0c97da4700ece00286d155505db61d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-141127.hdr.sgml**: 20250616

**ACCESSION NUMBER**: 0001193125-25-141127

**CONFORMED SUBMISSION TYPE**: SC 14D9/A

**PUBLIC DOCUMENT COUNT**: 3

**FILED AS OF DATE**: 20250616

**DATE AS OF CHANGE**: 20250616

**SUBJECT COMPANY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SERVOTRONICS INC /DE/
- **CENTRAL INDEX KEY:** 0000089140
- **STANDARD INDUSTRIAL CLASSIFICATION:** CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 160837866
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** SC 14D9/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 005-32675
- **FILM NUMBER:** 251048603

**BUSINESS ADDRESS:**
- **STREET 1:** 1110 MAPLE ST
- **CITY:** ELMA
- **STATE:** NY
- **ZIP:** 14059
- **BUSINESS PHONE:** 7166335990

**MAIL ADDRESS:**
- **STREET 1:** P O BOX 300
- **CITY:** ELMA
- **STATE:** NY
- **ZIP:** 14059-0300
**FILED BY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SERVOTRONICS INC /DE/
- **CENTRAL INDEX KEY:** 0000089140
- **STANDARD INDUSTRIAL CLASSIFICATION:** CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 160837866
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** SC 14D9/A

**BUSINESS ADDRESS:**
- **STREET 1:** 1110 MAPLE ST
- **CITY:** ELMA
- **STATE:** NY
- **ZIP:** 14059
- **BUSINESS PHONE:** 7166335990

**MAIL ADDRESS:**
- **STREET 1:** P O BOX 300
- **CITY:** ELMA
- **STATE:** NY
- **ZIP:** 14059-0300

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**SCHEDULE 14D-9** 

**(Rule 14d-101)** 

**Solicitation/Recommendation Statement** 

**Under Section 14(d)(4) of the Securities Exchange Act of 1934** 

**(Amendment No. 1)** 

## Servotronics, Inc.
**(Name of Subject Company)** 

**(Name of Person(s) Filing Statement)** 

**Common Stock, par value $0.20 per share** 

**(Title of Class of Securities)** 

**817732100** 

**(CUSIP Number of Class of Securities)** 

**William F. Farrell, Jr.** 

**Chief Executive Officer** 

**Servotronics, Inc.** 

**1110 Maple Street** 

**Elma, New York 14059-0300** 

**(716) 655-5990** 

**(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications** 

**on Behalf of the Person(s) Filing Statement)** 

***With a copy to:***

**Michael C. Donlon, Esq.** 

**Bond, Schoeneck & King, PLLC** 

**200 Delaware Avenue, Suite 900** 

**Buffalo, New York 14202** 

**(716) 416-7000** 

☐ Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.

------

**Purpose of Amendment.** 

This Amendment No. 1 (this "Amendment") amends and supplements the Solicitation/Recommendation Statement on Schedule 14D-9 of Servotronics, Inc., a Delaware corporation (the "Company"), filed with the United States Securities and Exchange Commission (the "SEC") on June 2, 2025 (together with the exhibits or annexes thereto, and as amended or supplemented from time to time, the "Schedule 14D-9"). The Schedule 14D-9 relates to the tender offer (the "Offer") made by TDG Rise Merger Sub, Inc. ("Purchaser"), a Delaware corporation and wholly-owned subsidiary of TransDigm Inc. ("Parent"), a Delaware corporation and wholly owned subsidiary of TransDigm Group Incorporated, a Delaware corporation ("TDG"), to purchase all of the outstanding shares of the Company's common stock, par value $0.20 per share (each a "Share," and collectively, the "Shares"), at a purchase price of $47.00 per Share, payable net to the seller in cash, without interest, subject to any withholding of taxes required by applicable law, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated June 2, 2025, and in the related Letter of Transmittal. The Offer is described in a Tender Offer Statement on Schedule TO, filed by TDG, Parent and Purchaser with the SEC on June 2, 2025 (together with the exhibits or annexes thereto, and as amended or supplemented from time to time, the "Schedule TO").

On June 10, 2025, a complaint was filed in the Supreme Court of the State of New York, County of New York (Miller v. Servotronics, Inc., et al., Index No. 653524/2025, filed June 10, 2025 (Sup. Ct. N.Y. Cnty.)) (the "Complaint"). The Complaint names as defendants the Company and each member of the Board. The Complaint alleges that the defendants violated New York common law, for purported negligence, breach of fiduciary duties, aiding and abetting the breach of fiduciary duties, and negligent misrepresentation and concealment, by omitting and/or misrepresenting certain material facts related to the transaction from the Schedule 14D-9 filed by the Company on June 2, 2025. The Complaint seeks, among other relief, (i) injunctive relief preventing the consummation of the Transactions until the Company corrects the alleged deficiencies in the Schedule 14D-9, (ii) rescission of the Transactions or rescissory damages, (iii) an award of plaintiffs' costs and disbursements of the action, including attorneys' and expert fees and expenses, and (iv) other relief as the courts deem just and proper. The defendants believe that the claims asserted in the Complaint are without merit.

The Company also received a number of demand letters from purported stockholders of Servotronics (the "Demand Letters") alleging that the Schedule 14D-9 filed by the Company on June 2, 2025 contained disclosure deficiencies and/or incomplete information in connection with the transaction.

The Company believes that the Complaint and Demand Letters are without merit. However, litigation is inherently uncertain. Additional complaints arising out of the Transactions may be filed and additional demand letters may be received. While the Company believes that the disclosures set forth in the Schedule 14D-9 comply fully with applicable law, to moot plaintiffs' disclosure claims and to avoid nuisance, expense and delay, the Company has determined to voluntarily supplement the Schedule 14D-9 with the below disclosures. Nothing in the below supplemental disclosures shall be deemed an admission of the legal necessity or materiality under applicable law of any of the disclosures set forth herein.

Except as otherwise set forth below, the information set forth in the Schedule 14D-9 remains unchanged and is incorporated by reference as relevant to the items in this Amendment. Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Schedule 14D-9. This Amendment is being filed to reflect certain updates as reflected below.

**Item 3.** **Past Contracts, Transactions, Negotiations and Arrangements.** <br>

**Item 3 of the Schedule 14D-9 is hereby amended and supplemented as follows:** 

*The subsection titled "Employment Agreements and Retention Arrangements Through and Following the Merger", appearing on page 12 of the Schedule 14D-9, is amended and restated as follows (new language underlined):* 

As of the date of this Schedule 14D-9, Parent and Purchaser have informed the Company that none of the Company's current executive officers have entered into any new agreement, arrangement or understanding with

------

Parent, Purchaser or their affiliates regarding employment or retention with the Surviving Corporation <u>or, as of the date of this Schedule 14D-9, have had any discussions with Parent, Purchaser or their affiliates regarding the same.</u> Although it is possible that the Company, Parent, Purchaser or the Surviving Corporation may enter into employment, retention or consultancy agreements, arrangements or undertakings with the Company's executive officers and certain other key employees prior to the Effective Time, as of the date of this Schedule 14D-9, there can be no assurance as to whether any parties will enter into any agreement, arrangement or undertaking or reach an agreement regarding the same. Neither the Offer nor the Merger is conditioned upon any executive officer or director of the Company entering into any agreement, arrangement or understanding with Parent or Purchaser.

**Item 4.** **The Solicitation or Recommendation.** <br>

**The subsection of Item 4 of the Schedule 14D-9 entitled "Background of the Offer and Merger" is hereby amended and supplemented as follows:** 

*Beginning on page 12, the eighth full paragraph is amended and restated as follows (new language underlined):* 

Beginning on March 24, 2025, parties who executed a confidentiality agreement in customary form, including customary confidentiality, non-use, non-solicitation and standstill provisions, at the direction of the Strategic Committee, received a bid process letter and a confidential information presentation regarding the Company. The process letter invited parties to submit preliminary non-binding indications of interest for an acquisition of 100% of the Shares of the Company by no later than April 16, 2025, and specified the preliminary proposal requirements. Between March 24 and April 16, 2025, at the direction of the Strategic Committee, Houlihan Lokey and Company management responded to initial questions and due diligence requests from various parties, including TDG and Party A. <u>The standstill provision in each confidentiality agreement terminated upon the initial announcement of the Transactions and did not preclude any interested party from making an offer to acquire the Company's securities or assets.</u>

**The subsection of Item 4 of the Schedule 14D-9 entitled "Opinion of the Financial Advisor to Servotronics" is hereby amended as follows:** 

*The subsection titled "Selected Companies Analysis", beginning on page 24 of the Schedule 14D-9, is amended and restated as follows (new language underlined; deleted language struck through):* 

*Selected Companies Analysis*. Houlihan Lokey reviewed certain data for selected companies, with publicly traded equity securities, that Houlihan Lokey deemed relevant.

The financial data reviewed included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Enterprise value as a multiple of estimated calendar year 2025 ("CY 2025E") Adjusted EBITDA; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Enterprise value as a multiple of estimated calendar year 2026 ("CY 2026E") Adjusted EBITDA.

The selected companies and resulting data were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AMETEK, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Crane Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ducommun Incorporated

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ESCO Technologies Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• HEICO Corporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ITT Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loar Holdings Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Moog Inc.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Parker-Hannifin Corporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TransDigm Group Incorporated

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Woodward, Inc.

---

| | | |
|:---|:---|:---|
| **<u>Company</u>** | **Enterprise Value as a Multiple of<br>Adjusted EBITDA** | **Enterprise Value as a Multiple of<br>Adjusted EBITDA** |
| **<u>Company</u>** | **CY 2025E** | **CY 2026E** |
|  <u>AMETEK, Inc.</u> | <u>19.4x</u> | <u>18.2x</u> |
|  <u>Crane Company</u> | <u>20.8x</u> | <u>18.6x</u> |
|  <u>Ducommun Incorporated</u> | <u>9.7x</u> | <u>8.6x</u> |
|  <u>ESCO Technologies Inc.</u> | <u>18.2x</u> | <u>16.5x</u> |
|  <u>HEICO Corporation</u> | <u>31.4x</u> | <u>29.0x</u> |
|  <u>ITT Inc.</u> | <u>14.9x</u> | <u>13.9x</u> |
|  <u>Loar Holdings Inc.</u> | <u>NMF</u> | <u>37.7x</u> |
|  <u>Moog Inc.</u> | <u>12.9x</u> | <u>11.8x</u> |
|  <u>Parker-Hannifin Corporation</u> | <u>18.2x</u> | <u>17.1x</u> |
|  <u>TransDigm Group Incorporated</u> | <u>22.5x</u> | <u>20.6x</u> |
|  <u>Woodward, Inc.</u> | <u>21.1x</u> | <u>18.7x</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Low** | **9.7x** | **8.6x** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Median** | **18.8x** | **18.2x** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Mean** | **18.9x** | **19.2x** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **High** | **31.4x** | **37.7x** |

---

<u>Note: "NMF" refers to not meaningful figure.</u> 

Taking into account the results of the selected companies analysis, Houlihan Lokey applied selected multiple ranges of 8.0x to 11.0x CY 2025E Adjusted EBITDA and 6.0x to 9.0x CY 2026E Adjusted EBITDA<u>, based on its professional judgment and experience,</u> to corresponding financial data for the Company. The selected companies analysis indicated implied per share value reference ranges of $11.73 to $16.52 per Share based on the selected range of multiples of CY 2025E Adjusted EBITDA and $17.93 to $27.43 per Share based on the selected range of multiples of CY 2026E Adjusted EBITDA, as compared to the proposed Transaction Consideration of $47.00 per Share<u>, in each case using fully-diluted Shares outstanding of approximately 2.61</u> <u>million (taking into account approximately 2.56</u> <u>million Shares outstanding and approximately 0.05</u> <u>million PSUs, each as provided by management of the Company)</u>.

*The subsection titled "Selected Transactions Analysis", beginning on page 25 of the Schedule 14D-9, is amended and restated as follows (new language underlined; deleted language struck through):* 

*Selected Transactions Analysis*. Houlihan Lokey considered certain financial terms of certain transactions involving target companies that Houlihan Lokey deemed relevant.

The financial data reviewed included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transaction value as a multiple of Adjusted EBITDA for the next fiscal year period as of announcement of the
transaction, or "NFY"

------

The selected transactions and resulting data were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Date**<br> **Announced** | **Target** | **Acquiror** | **<u>Transaction</u>**<br>**<u>Value as a</u>**<br>**<u>Multiple of</u>**<br>**<u>NFY<br>Adjusted</u>**<br>**<u>EBITDA</u>** |
|  2/3/2025 | Triumph Group, Inc. | Berkshire Partners LLC; WarburgPincus LLC | <u>15.3x</u> |
|  11/4/2024 | Micropac Industries, Inc | Teledyne Technologies Incorporated | <u>9.3x</u> |
|  10/7/2024 | Barnes Group Inc | Apollo Global Management, Inc | <u>12.0x</u> |
|  8/1/2024 | kSARIA Corporation | ITT Inc | <u>13.0x</u> |
|  7/19/2024 | Applied Avionics, Inc. | Loar Group, Inc. | <u>18.3x</u> |
|  7/11/2024 | Héroux-Devtek Inc. | Platinum Equity, LLC | <u>12.2x</u> |
|  7/1/2024 | Spirit AeroSystems Holdings, Inc. | The Boeing Company | <u>NMF</u> |
|  1/19/2024 | Kaman Corporation | Arcline Investment Management LP | <u>15.2x</u> |
|  1/3/2024 | Vian Enterprises, Inc. | Crane Company | <u>NA</u> |
|  7/21/2023 | Actuation and Flight Control Business of Collins Aerospace | Safran SA | <u>14.0x</u> |
|  6/5/2023 | MB Aerospace Holdings Limited | Barnes Aerospace, Inc. | <u>11.4x</u> |
|  5/15/2023 | Wencor Group, LLC | HEICO Corporation | <u>13.4x</u> |
|  5/23/2022 | Aircraft Wheel and Brake Division of Parker-Hannifin Corp | Kaman Corporation | <u>NA</u> |
|  8/2/2021 | Meggitt PLC | Parker-Hannifin Corporation | <u>23.4x</u> |
|  2/1/2021 | Cobham Mission Systems Wimborne Limited | Eaton Corporation plc | <u>13.0x</u> |
|  1/4/2021 | FLIR Systems, Inc | Teledyne Technologies Incorporated | <u>17.3x</u> |
|  | **Low** |  | **9.3x** |
|  | **Median** |  | **13.4x** |
|  | **Mean** |  | **14.5x** |
|  | **High** |  | **23.4x** |

---

<u>Note: "NMF" refers to not meaningful figure and "NA" refers to not available.</u> 

Taking into account the results of the selected transactions analysis, based on its professional judgment and experience, Houlihan Lokey applied a selected multiple range of 13.0x to 17.0x to the Company's CY 2025E Adjusted EBITDA. The selected transactions analysis indicated an implied per share value reference range of $19.72 to $26.11 per Share based on the Company's 2025E Adjusted EBITDA, as compared to the proposed Transaction Consideration of $47.00 per Share<u>, in each case using fully-diluted Shares outstanding of approximately 2.61</u> <u>million (taking into account approximately 2.56</u> <u>million Shares outstanding and approximately 0.05</u> <u>million PSUs, each as provided by management of the Company)</u>.

------

*The subsection titled "Discounted Cash Flow Analyses", beginning on page 26 of the Schedule 14D-9, is amended and restated as follows (new language underlined):* 

*Discounted Cash Flow Analysis*. Houlihan Lokey performed a discounted cash flow analysis of the Company by calculating the estimated net present value of the projected unlevered, after-tax free cash flows of the Company based on the Company Forecasts. Houlihan Lokey calculated terminal values for the Company by applying a range of perpetuity growth rates of 2.5% to 3.5%<u>, based on Houlihan Lokey's professional judgment and experience,</u> to the estimated unlevered free cash flow for the Company for the terminal fiscal year. The present values of the Company's projected future cash flows and terminal values were then calculated using discount rates ranging from 12.5% to 16.5%<u>, which range of discount rates was selected, upon the application of Houlihan Lokey's experience and professional judgment, to reflect the Company's estimated range of weighted average cost of capital based in part on the Capital Asset Pricing Model and certain metrics related to the selected companies</u>. The discounted cash flow analysis indicated an implied per share value reference range of $15.69 to $26.54 per Share, as compared to the proposed Transaction Consideration of $47.00 per Share<u>, in each case using fully-diluted Shares outstanding of approximately 2.61</u> <u>million (taking into account approximately 2.56</u> <u>million Shares outstanding and approximately 0.05</u> <u>million PSUs, each as provided by management of the Company)</u>.

*The first paragraph of the subsection titled "Miscellaneous", beginning on page 26 of the Schedule 14D-9, is amended and restated as follows (new language underlined; deleted language struck through):* 

Houlihan Lokey was engaged by the Company to act as its financial advisor in connection with the transactions and provide financial advisory services, including an opinion to the Servotronics Board as to the fairness, from a financial point of view, to the holders of Shares of the Transaction Consideration to be received by such holders in the Offer and the Merger. The Company engaged Houlihan Lokey based on Houlihan Lokey's experience and reputation. Houlihan Lokey is regularly engaged to provide financial advisory services in connection with mergers and acquisitions, financings, and financial restructurings. Pursuant to its engagement by the Company, Houlihan Lokey will receive a fee of <u>based upon a percentage of the transaction value of the Transactions, which fee is estimated as of the date of this Schedule 14D-9 to be</u> approximately $8.5 million for such services, a substantial portion of which is contingent upon the completion of the Offer. The Company has also agreed to reimburse Houlihan Lokey for certain expenses and to indemnify Houlihan Lokey, its affiliates and certain related parties against certain liabilities and expenses, including certain liabilities under the federal securities laws, arising out of or related to Houlihan Lokey's engagement.

*The third paragraph of the subsection titled "Miscellaneous", beginning on page 27 of the Schedule 14D-9, is amended and restated as follows (new language underlined):* 

Houlihan Lokey has in the past provided investment banking, financial advisory and/or other financial or consulting services to TDG, for which Houlihan Lokey has received compensation. Based on a review of its internal information management systems, Houlihan Lokey did not identify any engagements by the Company, Parent or TDG for which Houlihan Lokey received fees for providing investment banking or financial advisory services during the two years immediately prior to the date of its opinion. Houlihan Lokey and certain of its affiliates may provide investment banking, financial advisory and/or other financial or consulting services to the Company, Parent, TDG, other participants in the transactions or certain of their respective affiliates or security holders in the future, for which Houlihan Lokey and its affiliates may receive compensation. Furthermore, in connection with bankruptcies, restructurings, distressed situations and similar matters, Houlihan Lokey and certain of its affiliates may have in the past acted, may currently be acting and may in the future act as financial advisor to debtors, creditors, equity holders, trustees, agents and other interested parties (including, without limitation, formal and informal committees or groups of creditors) that may have included or represented and may include or represent, directly or indirectly, or may be or have been adverse to, the Company, Parent, TDG, other participants in the transactions or certain of their respective affiliates or security holders, for which advice and services Houlihan Lokey and its affiliates may have received and may receive compensation.

------

**Item 5.** **Person/Assets, Retained, Employed, Compensated or Used.** <br>

**Item 5 of the Schedule 14D-9 is hereby amended and supplemented as follows:** 

*The first paragraph of Item 5, beginning on page 27 of the Schedule 14D-9, is amended and restated as follows (new language underlined; deleted language struck through):* 

Houlihan Lokey was engaged by the Company to act as its financial advisor in connection with the Transactions and provide financial advisory services, including an opinion to the Servotronics Board as to the fairness, from a financial point of view, to the holders of Shares of the Transaction Consideration to be received by such holders in the Offer and the Merger. The Company engaged Houlihan Lokey based on Houlihan Lokey's experience and reputation. Houlihan Lokey is regularly engaged to provide financial advisory services in connection with mergers and acquisitions, financings, and financial restructurings. Pursuant to its engagement by the Company, Houlihan Lokey will receive a fee of <u>based upon a percentage of the transaction value of the Transactions, which fee is estimated as of the date of this Schedule 14D-9 to be</u> approximately $8.5 million for such services, a substantial portion of which is contingent upon the completion of the Offer. The Company has also agreed to reimburse Houlihan Lokey for certain expenses and to indemnify Houlihan Lokey, its affiliates and certain related parties against certain liabilities and expenses, including certain liabilities under the federal securities laws, arising out of or related to Houlihan Lokey's engagement.

**Item 8.** **Additional Information.** <br>

**Item 8 of the Schedule 14D-9 is hereby amended and supplemented as follows:** 

*On page 36, the paragraph immediately below the heading "Legal Proceedings" is deleted and replaced as follows:* 

On June 10, 2025, a complaint was filed in the Supreme Court of the State of New York, County of New York (*Miller v. Servotronics, Inc., et al.*, Index No. 653524/2025, filed June 10, 2025 (Sup. Ct. N.Y. Cnty.)) (the "Complaint"). The Complaint names as defendants the Company and each member of the Board. The Complaint alleges that the defendants violated New York common law, for purported negligence, breach of fiduciary duties, aiding and abetting the breach of fiduciary duties, and negligent misrepresentation and concealment, by omitting and/or misrepresenting certain material facts related to the transaction from the Schedule 14D-9 filed by the Company on June 2, 2025. The Complaint seeks, among other relief, (i) injunctive relief preventing the consummation of the Transactions until the Company corrects the alleged deficiencies in the Schedule 14D-9, (ii) rescission of the Transactions or rescissory damages, (iii) an award of plaintiffs' costs and disbursements of the action, including attorneys' and expert fees and expenses, and (iv) other relief as the courts deem just and proper. The defendants believe that the claims asserted in the Complaint are without merit.

The Company also received a number of demand letters from purported stockholders of Servotronics (the "Demand Letters") alleging that the Schedule 14D-9 filed by the Company on June 2, 2025 contained disclosure deficiencies and/or incomplete information in connection with the transaction.

If additional similar complaints are filed or additional demands are received, absent new or different allegations that are material, the Company, Parent and/or Merger Sub will not necessarily disclose them. The outcome of the matters described above cannot be predicted with certainty. Additional lawsuits arising out of or relating to the Offer may be filed in the future.

*The third paragraph of Item 5, beginning on page 36 of the Schedule 14D-9, is amended and restated as follows (new language underlined):* 

The Company Forecasts are based on numerous estimates and assumptions, including assumptions regarding the global economy, the Company's revenue growth, customer retention, pricing, cost structure, inflation, capital expenditures and working capital requirements. <u>The Company Forecasts were prepared by the Company on a standalone basis and do not take into account the Transactions, including any costs incurred in connection with the Offer or the Merger or any other transactions or any changes to the Company's operations or strategy that</u>

------

 <u>may be implemented after the completion of the Transactions.</u> The underlying assumptions used in the Company Forecasts are generally based on information and market factors known to Company management when prepared during the first half of 2025.

*The fifth paragraph in the subsection titled "Certain Company Management Forecasts", beginning on page 37 of the Schedule 14D-9, is amended and restated as follows (new language underlined):* 

The following is a summary of the Company Forecasts (based on a fiscal year ending on December 31 of the indicated year):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(Dollars in Millions)* | <u>2025E</u> | <u>2026E</u> | <u>2027E</u> | <u>2028E</u> | <u>2029E</u> |
|  **<u>Revenue</u>** | $<u>53.7</u> | $<u>66.8</u> | $<u>75.3</u> | $<u>83.4</u> | $<u>91.7</u> |
|  **<u>Operating Income</u>** | $<u>3.0</u> | $<u>6.9</u> | $<u>9.4</u> | $<u>11.6</u> | $<u>13.9</u> |
|  **<u>Adjusted EBITDA</u>** <u>(non-GAAP)<sup>(1)</sup></u> | $<u>4.2</u> | $<u>8.3</u> | $<u>11.0</u> | $<u>13.4</u> | $<u>16.1</u> |
|  **<u>Unlevered Free Cash Flow</u>** <u>(non-GAAP)<sup>(2)</sup></u> | $<u>0.9</u> | $<u>1.6</u> | $<u>3.8</u> | $<u>4.7</u> | $<u>4.2</u> |

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<u>(1)</u> <u>EBITDA refers to operating income before interest, taxes, depreciation and amortization. For the Company, adjusted EBITDA excludes non-recurring expenses related to proxy contest costs.</u> 

<u>(2)</u> <u>Unlevered Free Cash Flow is calculated by taking operating income after tax, adding back depreciation and amortization expense, subtracting capital expenditures, and adjusting for changes in net working capital.</u> 

<u>The following tables present additional information used to determine Adjusted EBITDA and Unlevered Free Cash Flow for each of the periods indicated below (amounts may reflect rounding):</u>

<u>Adjusted EBITDA:</u> 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(Dollars in Millions)* | 2025E | 2026E | 2027E | 2028E | 2029E |
|  **Revenue** | $53.7 | $66.8 | $75.3 | $83.4 | $91.7 |
|  **Cost of Goods Sold** | ($41.2) | ($48.9) | ($53.3) | ($58.0) | ($62.9) |
|  **Gross Profit** | $12.5 | $18.0 | $22.1 | $25.4 | $28.9 |
|  **Operating Expenses** | ($9.5) | ($11.0) | ($12.6) | ($13.8) | ($15.0) |
|  **Operating Income** | $3.0 | $6.9 | $9.4 | $11.6 | $13.9 |
|  <u>Plus</u>: Depreciation and Amortization | $1.1 | $1.3 | $1.6 | $1.9 | $2.2 |
|  <u>Plus</u>: One-Time Expenses | $0.1 |  |  |  |  |
|  **Adjusted EBITDA** | $4.2 | $8.3 | $11.0 | $13.4 | $16.1 |

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<u>Unlevered Free Cash Flow:</u> 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <u>*(Dollars in Millions)*</u> | <u>2025E</u> | <u>2026E</u> | <u>2027E</u> | <u>2028E</u> | <u>2029E</u> |
|  **<u>Operating Income</u>** | $<u>3.0</u> | $<u>6.9</u> | $<u>9.4</u> | $<u>11.6</u> | $<u>13.9</u> |
|  **<u>Provision for Income Tax</u>** | $<u>0.6</u> | $<u>1.5</u> | $<u>2.0</u> | $<u>2.4</u> | $<u>2.9</u> |
|  **<u>Operating Income After Tax</u>** | $<u>2.4</u> | $<u>5.5</u> | $<u>7.5</u> | $<u>9.1</u> | $<u>11.0</u> |
|  <u>Plus: Depreciation and Amortization</u> | $<u>1.1</u> | $1.3 | $<u>1.6</u> | $<u>1.9</u> | $<u>2.2</u> |
|  <u>Less: Capital Expenditures</u> | $<u>1.5</u> | $<u>1.9</u> | $<u>2.2</u> | $<u>2.5</u> | $<u>2.9</u> |
|  <u>Less: Change in Net Working Capital</u> | $<u>1.1</u> | $<u>3.3</u> | $<u>3.1</u> | $<u>3.7</u> | $<u>6.1</u> |
|  **<u>Unlevered Free Cash Flow</u>** | $<u>0.9</u> | $<u>1.6</u> | $<u>3.8</u> | $<u>4.7</u> | $<u>4.2</u> |

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**Item 9.** **Exhibits.** <br>

**Item 9 is hereby amended and supplemented by adding the following exhibit:** 

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| | |
|:---|:---|
| Exhibit No. | Description |
|  (a)(1)(G) | Servotronics, Inc. Employee Stock Ownership Plan Questions and Answers |

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SIGNATURE

After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

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| | | |
|:---|:---|:---|
| Dated: June 16, 2025 | SERVOTRONICS, INC. | SERVOTRONICS, INC. |
|  | By: | /s/ Robert A. Fraass |
|  | Name: | Robert A. Fraass |
|  | Title: | Chief Financial Officer |

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## Ex-99.(A)(1)(G)

**Exhibit (a)(1)(G)** 

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| | |
|:---|:---|
| To: | All Participants in the Servotronics Inc. Employee Stock Ownership Plan (ESOP) |
| From: | Robert Fraass |
| Re: | Your ESOP Shares and the TransDigm Tender Offer |
| Date: | June 16, 2025 |

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![LOGO](g34125g12m12.jpg)

Enclosed, in Question and Answer (Q&A) format, is some important information concerning the Servotronics shares in your ESOP account and the tender offer for all Servotronics shares made by TransDigm on June 2, 2025. You should already have received several documents from TransDigm that describe the tender offer (see Question 3 in the enclosed Q&A), including a "Letter of Instructions to the ESOP Instruction Form" and the ESOP Instruction Form itself.

PLEASE BE AWARE THAT THE LETTER OF INSTRUCTIONS WRONGLY STATES THAT THERE ARE 100 SHARES OF SERVOTRONICS STOCK ALLOCATED TO YOUR ESOP ACCOUNT. THE CORRECT NUMBER OF SHARES CURRENTLY ALLOCATED TO YOUR ACCOUNT IS STATED IN THE ENCLOSED COPY OF YOUR NOVEMBER 30, 2024 PARTICIPANT ACCOUNT STATEMENT. (November 30, 2024 is the last day of the most recently completed plan year.)

<u>If you have not yet delivered (in hard copy or electronically) your ESOP Instruction Form, such form must be received by Computershare, the tabulation agent, no later than Monday, June 23, 2025 at 5:00 p.m. Eastern Time.</u> 

If you *have* already delivered your ESOP Instruction Form, your tender instructions will apply to all your ESOP shares or, if applicable, the percentage of all your ESOP shares that you stated in your tender instructions.

If you have already delivered the ESOP Instruction Form, you can change or withdraw your tender instructions (in hard copy or electronically) <u>provided that the new instructions are received by the tabulation agent no later than at any time up to Monday, June</u> <u>23, 2025 at 5:00 p.m. Eastern Time</u>.

Please see the enclosed Q&A for more information about the tender offer and your ESOP shares.

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QUESTIONS AND ANSWERS REGARDING TENDER RIGHTS OF PARTICIPANTS IN THE SERVOTRONICS INC. EMPLOYEE STOCK OWNERSHIP PLAN

**1.** **What is the purpose of this notice?** 

A tender offer for all outstanding shares of Servotronics Inc. ("<u>Servotronics</u>") commenced on June 2, 2025. As a participant in the Servotronics Employee Stock Ownership Plan (the "<u>ESOP</u>"), you have the right to direct the ESOP Trustees whether to tender – that is, sell for the tender offer price – the Servotronics shares allocated to your ESOP account.

<u>Note</u>: You do NOT have the right to tender your ESOP shares directly. See Question 4, below.

This notice summarizes the tender offer, explains how you can direct the ESOP Trustees whether to tender your allocated shares, and how and when you may be paid for your allocated shares.

**2.** **What is the tender offer?** 

On June 2, 2025, TDG Rise Merger Sub, Inc. (the "<u>Purchaser</u>"), a wholly owned subsidiary of TransDigm Inc., a Delaware corporation ("<u>TransDigm</u>"), commenced an offer to purchase 100% of the shares of common stock of Servotronics, par value $0.20 per share ("<u>Shares</u>"), at a price of $47.00 per Share (the "<u>Tender Offer</u>").

The Tender Offer is summarized in an Offer to Purchase document that was mailed to you June 2, 2025 (the "<u>Offer to Purchase</u>") and was made pursuant to the Agreement and Plan of Merger dated as of May 18, 2025, as amended by Amendment No. 1 to Agreement and Plan of Merger, dated as of May 28, 2025 (as amended, the "<u>Merger Agreement</u>"), by and among Servotronics, TransDigm, and the Purchaser.

The Tender Offer will remain open until one minute after 11:59 p.m., New York City time, on Monday, June 30, 2025, unless the Tender Offer is extended (as extended, the "<u>Expiration Date</u>"). The cut-off date for receipt of instructions from ESOP participants is 5:00 p.m., Eastern Time, on Monday, June 23, 2025 (or, if the Tender Offer is extended, on the day that is five business days prior to the Expiration Date). Note: If you have already completed and delivered an ESOP Instruction Form, you can revise or withdraw it on or before the cut-off date.

After completion of the Tender Offer and the satisfaction or waiver of certain conditions, Purchaser will be merged with and into Servotronics (the "<u>Merger</u>"). Servotronics will be the surviving corporation and a wholly owned subsidiary of TransDigm and all remaining Shares, not already tendered, will be converted by operation of law into the right to receive $47.00 per Share as Merger consideration.

**3.** **What documents have I received in connection with the Tender Offer?** 

You should have already received the following materials relating to the Tender Offer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The <u>Offer to Purchase</u> dated June 2, 2025. This document describes the material terms and conditions
of the Tender Offer and the Merger. PLEASE READ THIS DOCUMENT CAREFULLY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Solicitation/Recommendation Statement on Schedule 14D-9</u> dated
June 2, 2025. This document describes the reasons for the Servotronics Board of Director's approval of the Offer and the Merger. PLEASE READ THIS DOCUMENT CAREFULLY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Letter of Instructions to the ESOP Instruction Form</u>. The Letter of Instructions describes how you can
direct the ESOP Trustees to tender or not to tender Shares allocated to your ESOP account by completing and returning the ESOP Instruction Form to the tabulation agent, Computershare Trust Company, N.A. See Questions 4 – 7 below for more
information on directing the ESOP whether to tender your Shares..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Letter of Transmittal</u>. This document is part of the Tender Offer and therefore has been provided to you,
but <u>it only applies to Shares held outside the ESOP</u>. YOU DO NOT NEED TO COMPLETE AND

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SIGN THE LETTER OF TRANSMITTAL OR PROVIDE AN IRS FORM W-9 IF YOU ONLY HOLD SHARES THROUGH THE ESOP. For Shares you hold through the ESOP, complete and sign the ESOP Instruction Form described in Question 3(c), above.

**4.** **What are my rights with respect to the Tender Offer?** 

The ESOP's records indicate that there are Shares held by the ESOP ("<u>ESOP Shares</u>") that are allocated to your account. As provided in the ESOP plan document and as explained in the Offer to Purchase, you may instruct the Trustees to tender or not to tender some or all of these allocated Shares. Refer to the Letter of Instructions to the ESOP Instruction Form (Question 3(c), above) for guidance on how you can give instructions for your allocated Shares.

Note, however, that because federal law requires that the ESOP Shares be held in trust, all ESOP Shares are registered in the name of the current Trustees.

Servotronics has engaged Spinnaker Trust to act as independent fiduciary of the ESOP in connection with the Tender Offer. As independent fiduciary, Spinnaker Trust will represent the interests of ESOP participants, and not Servotronics or any other party, in connection with the Tender Offer.

Spinnaker Trust will direct the tender of ESOP Shares allocated to participants' accounts by aggregating all participant tender instructions and completing the required Letter of Transmittal for all Plan participants. The ESOP fiduciaries generally will follow participant tender offer instructions as long as they determine that (a) participants were provided with all necessary information regarding the Tender Offer, and clearly false or misleading information was not distributed to them, and (b) following the participants' instructions would not result in a violation of ERISA.

**5.** **What happens if I direct the independent fiduciary to tender the Shares allocated to my ESOP account?** 

If you direct Spinnaker Trust as independent fiduciary to tender the Shares allocated to your ESOP account, then upon the closing of the Tender Offer, the Purchaser will pay to the ESOP Trustees, for your account, an amount equal to $47.00 multiplied by the number of Shares allocated to your account.

As explained in Section 15 of the Offer to Purchase, the completion of the Tender Offer is subject to the satisfaction of several important conditions. If you direct the independent fiduciary to tender Shares allocated to your ESOP account, but the Tender Offer is not completed (because one or more of these conditions were not satisfied), the Shares will be returned to the ESOP.

**6.** **What happens if I direct the independent fiduciary not to tender the Shares allocated to my ESOP account?** 

If you direct the independent fiduciary not to tender Shares allocated to your ESOP account, the Shares will continue to be held in the ESOP after the closing of the Tender Offer.

However, as provided in the Merger Agreement and as described in the Offer to Purchase, after the closing of the Tender Offer, the Purchaser is expected to be merged with and into Servotronics. If the Merger occurs, and your allocated Shares were not tendered, you will receive, as Merger consideration, the same amount of cash per Share ($47.00) that you would have received had your Shares been tendered, without any interest being paid on such amount. If you direct the independent fiduciary not to tender Shares allocated to your ESOP account and the Merger does not occur (see Question 5, second paragraph), the Shares allocated to you will continue to be held in the ESOP.

**7.** **What happens if I do not return the ESOP Instruction Form to the tabulation agent?** 

If you do not return the ESOP Instruction Form – that is, if you do not provide any instructions to the ESOP Trustees as to whether the Shares allocated to your Account should be tendered – Spinnaker Trust as

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independent fiduciary will be responsible for deciding whether to tender or not tender your Shares. The independent fiduciary will also be responsible for deciding whether to tender or not tender any ESOP Shares that are not yet allocated to any participant's account.

**8.** **Will I receive a cash payment if the Shares allocated to my ESOP account are tendered?** 

No, not immediately. The cash payment in connection with the Tender Offer and the Merger will be paid to the ESOP Trustees and credited to your account under the ESOP.

You will receive a distribution of your ESOP account when the ESOP is terminated (see Question 10, below) or, if the ESOP is not terminated, you can receive a distribution when you are eligible to do so in accordance with the terms and conditions of the ESOP.

**9.** **What will happen to the ESOP between now and the closing of the TransDigm transaction?** 

In anticipation of the Tender Offer and the Merger, the ESOP was "frozen" effective May 31, 2025. This means that no new participants will be admitted to the ESOP after that date. Otherwise, the ESOP will continue to operate as usual, and participants who terminate employment with Servotronics will continue to be eligible to receive a distribution of their accounts.

**10.** **Will Servotronics make a final ESOP contribution before the Merger?** 

It is expected that Servotronics will make a final contribution to the ESOP on or immediately before the closing date of the Merger. When the final contribution to the ESOP is made, the remaining unallocated Shares will be released from the suspense account under the ESOP and allocated to participants. <u>As a result, the number of Shares allocated to your account may increase slightly from the number of Shares shown in your most recent account statement</u>.

**11.** **What will happen to my ESOP Shares after the closing of the Merger?** 

If the Tender Offer and the Merger are completed, all ESOP Shares will be converted to cash at the Tender Offer rate of $47.00 per share. The conversion will happen on the date of closing of the Tender Offer or on the later Merger date (depending on whether your ESOP Shares are tendered and accepted in the Tender Offer). Note that the final conversion of Shares to cash will include any additional Shares allocated to participants' accounts as a result of the final contribution described in Question 10.

The Merger Agreement requires that Servotronics terminate the ESOP no later than the day before the effective date of the Merger. If the ESOP is terminated, participants who have unvested account balances in the ESOP will become fully vested in the Shares allocated to their accounts. In addition, all participants in the ESOP will become entitled to receive a distribution of their account balance and they will have the option to elect whether to receive the distribution in cash or in the form of a rollover to an IRA or to another tax-qualified plan. If you elect to receive a cash distribution, the amount you receive will be subject to income tax. If you have not reached age 59<sup><sup>1</sup>⁄<sub>2</sub></sup>, you may also be subject to a 10% penalty. You may defer the income tax (and penalty) by rolling over your distribution.

If, for any reason, the ESOP is not terminated, then it will continue to operate as it has been operated and you can receive a distribution of your account when you are eligible to do so in accordance with the terms and conditions of the ESOP.

**Additional Information** 

This communication is neither an offer to purchase nor a solicitation of an offer to sell any securities. The tender offer is being made pursuant to a Tender Offer Statement on Schedule TO, containing an offer to

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purchase, a form of letter of transmittal and related tender offer documents, filed by TransDigm with the SEC on June 2, 2025. Servotronics filed a Solicitation/Recommendation Statement on Schedule 14D-9 relating to the tender offer with the SEC on June 2, 2025. These documents, as they may be amended from time to time, contain important information about the tender offer and Servotronics stockholders are urged to read them carefully before any decision is made with respect to the tender offer. The tender offer materials may be obtained at no charge by directing a request by mail to Okapi Partners LLC, 1212 Avenue of the Americas, 17<sup>th</sup> Floor, New York, New York 10036 or by calling toll-free at (844) 203-3605, and may also be obtained at no charge at the website maintained by the SEC at www.sec.gov.

**Forward Looking Statements** 

Statements in this document may contain, in addition to historical information, certain forward-looking statements. All statements included in this document concerning activities, events or developments that Servotronics expects, believes or anticipates will or may occur in the future are forward-looking statements. Actual results could differ materially from the results discussed in the forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and involve known and unknown risks, uncertainties and other factors that may cause actual results and performance to be materially different from any future results or performance expressed or implied by forward-looking statements, including the risk that the tender offer will not close because of a failure to satisfy one or more of the closing conditions and that Servotronics' business will have been adversely impacted during the pendency of the tender offer. Additional information on these and other risks, uncertainties and factors is included in Servotronics' Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC.