HEICO TO ACQUIRE LEADING AVIATION INTERCONNECT DISTRIBUTOR
Flight Support Group to Acquire Air Cost Control of France, Germany, and USA
March 8, 2017
Miami and Sunrise, FL -- HEICO Corporation (NYSE: HEI.A and HEI) today announced that
its Flight Support Group has signed an agreement to acquire 80.1% of the operating units of Air
Cost Control ("A2C"). A2C's founders, Laurent and Laure Parelle will continue to own 19.9%
of A2C. 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 by the Parelles in 2000, A2C is a leading aviation electrical interconnect product
distributor of items such as connectors, wire, cable, protection and fastening systems. It also
distributes a wide range of electromechanical parts. A2C's customers include aircraft
manufacturers and their sub-tier suppliers, as well as airlines and maintenance, repair and
overhaul ("MRO") organizations worldwide.
The acquisition, which is expected to be completed within 30-45 days, is subject to a foreign
governmental approval and standard closing conditions.
A2C maintains extensive inventory and customer support centers in Hamburg, Germany,
Sunrise, Florida and near Toulouse, France, as well as satellite offices in Paris, Beijing, Madrid,
and Singapore, and employs approximately 130 team members. A2C's entire management
team will remain with the company in their existing roles and HEICO stated that it does not
expect any employee turnover to result from the acquisition.
Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, and Eric A. Mendelson,
HEICO's Co-President, jointly commented, "The Parelles have established an international
presence with attention to customer service and impressive execution. We are especially
pleased that they have chosen to join HEICO and are pleased to add A2C as a sister company
to Seal Dynamics in HEICO Flight Support's distribution activities. We welcome the Parelles
and the entire A2C team."
Laurent Parelle, President and CEO, and Laure Parelle, Executive VP and COO of A2C,
jointly remarked, "We are excited to have our team join the HEICO family. We believe that
HEICO will support our growth while we retain the unique culture and customer relationships
that we have built. Together we will continue our high standards of customer service that have
driven our growth since founding A2C seventeen years ago."
HEICO Corporation is engaged primarily in the design, production, servicing and distribution of
products and services to certain niche segments of the aviation, defense, space, medical,
telecommunications and electronics industries through its Hollywood, Florida-based Flight
Support Group and its Miami, Florida-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.
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: lower demand for commercial air travel or airline fleet changes or airline purchasing
decisions, 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; our ability to introduce new
products and services at profitable pricing levels, which could reduce our sales or sales growth;
product development or manufacturing difficulties, which could increase our product
development costs and delay sales; our ability to make acquisitions and achieve operating
synergies from acquired businesses; customer credit risk; interest, foreign currency exchange
and income tax rates; economic conditions within and outside of the aviation, defense, space,
medical, telecommunications and electronics industries, which could negatively impact our costs
and revenues; and defense budget cuts, which could reduce our defense-related
revenue. 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 forwardlooking
statement, whether as a result of new information, future events or otherwise, except to
the extent required by applicable law.