In a surprise move, Cleveland-headquartered TransDigm Group Inc. said it's acquiring Elma-based Servotronics Inc. for $110 million. However, the deal raises some concerns about whether Servotronics will maintain its Elma and Franklinville presence where it employs a combined 275 workers.
At first glance, the leadership of both TransDigm and Servotronics are saying all the right words about keeping the company based in Elma.
And, remember two years ago TransDigm bought the Calspan Corp. - based in Cheektowaga - and has not only maintained its 630 workers, it has added more workers locally and at other Calspan locations.
The Erie County Industrial Development Agency’s Brenda McDuffie said she hopes history does repeat itself.
“They offer a high level of jobs, and the people who work there usually have longevity,” McDuffie said. “They're a good company for this community, and we want to have the expectation that they will remain a good company for this community.”
Servotronics is an ideal fit for TransDigm. TransDigm’s field is developing components for the aerospace industry. Servotronics makes servo values that are key components in both the space and defense industry.
McDuffie thinks because two companies are linked, it may help keep Servotronics in Elma where the bulk of its R&D and manufacturing takes place.
“It gives us a level of comfort, but there's always unknowns, so obviously us establishing a relationship with them is very important,” McDuffie said.
Still, McDuffie said no one should make any assumptions. She said staff from the ECIDA will be reaching out to the new TransDigm and Servotronics leadership teams to see what public sector assistance can be offered.
“The markets in Cleveland and Buffalo have a lot of similarities,” McDuffie said. “They are not strangers to this community so seeing them grow a company that they acquired here locally gives us some degree of comfort that they know the market.”
For now, it is a wait-and-see mode until the dust settles on the TransDigm/Servotronics deal settles.
