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Flight Support Group Buys Aerospace & Commercial Technologies
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.
