HEICO to Acquire Leading Aviation Interconnect Distributor
09 March 2017 - 12:00AM
HEICO Corporation (NYSE:HEI.A) (NYSE: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.
For more information about HEICO, please visit our website 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: 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
forward-looking statement, whether as a result of new information,
future events or otherwise, except to the extent required by
applicable law.
Contact:
Eric A. Mendelson (305) 374-1745
Carlos L. Macau, Jr. (954) 987-4000
HEICO (NYSE:HEI)
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