HEICO Acquires Leading F-16 Spares Manufacturer
Flight Support Group Buys Aerospace & Commercial Technologies
Aug. 19, 2015
MIAMI and FT. WORTH, Texas, Aug. 19, 2015 -- HEICO Corporation (NYSE:HEI.A) (NYSE:HEI) today announced it has acquired 80.1% of Aerospace & Commercial Technologies (ACT), a leading provider of products and services necessary to maintain up-to-date F-16 fighter aircraft operational capabilities. ACT's leadership team will continue to own 19.9% of ACT. The purchase price and financial details were not disclosed.
HEICO stated that it expects the acquisition to be accretive to its earnings within the first year following the acquisition.
Founded in 2002, ACT supports the F-16 fleet with OEM quality products for the airframes and its systems on all delivered configurations and type versions. There are more than 3,000 F-16s in operation worldwide in 27 countries.
Ft. Worth, TX based ACT's entire management team will remain with the company in their existing positions and HEICO stated that it does not expect any employee turnover to result from the acquisition.
ACT will work in coordination with HEICO's Blue Aerospace subsidiary, which is also a Lockheed Martin F-16 licensee, to support the F-16 community worldwide. Both companies will operate as separate entities. HEICO acquired highly successful Blue Aerospace in 2011.
Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, and Eric A. Mendelson, HEICO's Co-President, jointly commented, "ACT is another perfect fit for HEICO. This acquisition expands our reach into defense aftermarket support more actively and extends HEICO's business base in this important sector. We expect synergies from ACT's depth of engineering, manufacturing and repair capabilities and Blue's extensive position in international markets."
Dave Smith, President of ACT, remarked, "ACT is excited to become part of the HEICO family. We believe that HEICO will help us to continue to grow and yet let us keep the company culture we have developed. Together we will satisfy the customers' needs with superior products and services."
HEICO continues to seek high quality acquisitions in the aerospace, defense and electronics industries.
HEICO Corporation is engaged primarily in certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, FL-based Flight Support Group and its Miami, FL-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers. For more information about HEICO, please visit our web site at http://www.heico.com.
Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements as a result of factors including, but not limited to: lower demand for commercial air travel or airline fleet changes, which could cause lower demand for our goods and services; product specification costs and requirements, which could cause an increase to our costs to complete contracts; governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales; HEICO's ability to introduce new products and product pricing levels, which could reduce our sales or sales growth and HEICO's ability to make acquisitions and achieve operating synergies from acquired businesses, customer credit risk, interest and income tax rates and economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues. Parties receiving this material are encouraged to review all of HEICO's filings with the Securities and Exchange Commission, including, but not limited to filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.b sites change HEICO's Class A Common Stock symbol (HEI.A) to HEI/A or HEIa.