Sparton announces the expansion of Sonobuoy JV
Feb 08, 2007
Sparton Corporation (NYSE:SPA) and Ultra Electronics Holdings plc ("Ultra") jointly announce the broadening of the scope of an existing joint venture agreement between their respective subsidiaries, Undersea Sensor Systems, Inc. (USSI), and Sparton Electronics Florida, Inc. This joint venture, known as ERAPSCO, is being revised to encompass a broader range of sonobuoy types qualified for use by the US Navy and procured by most international customers.
Sonobuoys are the sensors that are dropped into the ocean from Anti-Submarine Warfare (ASW) helicopters or aircraft and are used to detect submarines acoustically.
Under this agreement, the companies will achieve operational efficiencies and will eliminate duplicated development and production engineering efforts. This will allow both Ultra and Sparton to focus on undertaking those activities in the supply chain to which they add the most value. Customers will consequently receive the most cost effective airborne ASW sensor capability that can be achieved from available budgets and sustained in the long term.
David W. Hockenbrocht, Chief Executive Officer of Sparton and Douglas Caster, Chief Executive Officer of Ultra jointly commented: "We are pleased to have reached this agreement so that USSI and Sparton can work co-operatively. Our two companies will be able to pool their innovative ideas and manufacturing expertise and will be able to support customer ASW missions more effectively."