Cerberus Capital Management has entered an agreement to acquire Sparton Corporation, a manufacturer of complex electromechanical devices for the medical and biotechnology industries. Under the agreement, Cerberus will acquire all outstanding shares of Sparton’s common stock at $18.50 per share and in cash.

“This transaction is the result of the significant time and effort the company has invested in its previously announced process to explore strategic alternatives, including a potential acquisition of Sparton,” said Joseph Hartnett, interim president and CEO of Sparton, in a press release. “We are pleased to have successfully concluded our process with a transaction that delivers significant value to the shareholders of Sparton.”

The $18.50 per share represents a premium of about 41% over the closing share price on Dec. 11. The deal is expected to close in the first quarter of 2019.

“Sparton has a proven track record as a leading manufacturer of complex electromechanical devices for leading businesses and government agencies around the world. With its industry-leading solutions and strong customer relationships, we believe there is significant opportunity to further expand the company’s leadership position in its markets,” said Tarek Ajouz, managing director of Cerberus, said. “We look forward to partnering with Sparton’s talented employees to serve its customers with best-in-class solutions, build upon the foundation of excellent capabilities already in place, and help Sparton achieve its full potential for growth.”