HEICO Corporation Acquires Leading EMI/RFI Filter Company
17 December 2019 - 2:24AM
Business Wire
Electronic Technologies Group Acquires 80.1%
of Quell Corporation
HEICO Corporation (NYSE: HEI.A) (NYSE: HEI) today announced that
its Electronic Technologies Group acquired 80.1% of the stock of
rapidly-growing Quell Corporation in an all cash transaction.
Additional financial details were not disclosed.
HEICO expects the acquisition to be accretive to its earnings
within the first year following the closing.
(NOTE: HEICO has two classes of common stock traded on the
NYSE. Both classes, the Class A Common Stock (HEI.A) and the Common
Stock (HEI), are virtually identical in all economic respects. The
only difference between the share classes is the voting rights. The
Class A Common Stock (HEI.A) has 1/10 vote per share and the Common
Stock (HEI) has one vote per share.)
Quell designs and manufactures EMI/RFI and transient protection
solutions for a wide variety of connectors specific to their
customer’s applications and products. Quell is known for its
patented EESeal+™ and EESeal™ products which are flexible devices
that filter out transients and other interference in critical
electronics, communications and other systems. Quell principally
serves the aerospace and defense markets, where Quell’s seals are
found on commercial aircraft, defense aircraft, space vehicles and
numerous other defense applications.
Quell, which is located in Albuquerque, NM, employs 55 people.
HEICO stated that it does not expect any material team member
turnover to result from the purchase and that Quell will continue
to operate in its existing location.
Quell was founded in 1994 by Quell’s current President, Kevin
Foreman, and Paul Miller, who retired from active management early
this year. Mr. Foreman will continue to lead Quell’s management
with Scott Lindberg, Quell’s sales and marketing chief. Mr. Foreman
and Mr. Lindberg will also together continue to be significant
Quell owners, holding 19.9% of the company after the closing.
Laurans A. Mendelson, HEICO’s Chairman & Chief Executive
Officer, along with Victor H. Mendelson, HEICO’s Co-President and
Chief Executive Officer of HEICO’s Electronic Technologies Group,
commented, “Quell is a unique growth company, with unique products
and it is beloved by its customers for providing a crucial solution
to EMI and transient problems. We are honored to join with Kevin,
Scott and the entire well-regarded Quell team as Quell continues to
provide unparalleled solutions for harsh and hi-reliability
environments.”
Kevin Foreman remarked, “We wanted the right home for our
business—one where the team members and customers would be placed
first, and where Scott and I could continue to be major owners in a
business we believe so deeply in. We found that home in HEICO and
are excited to continue growing and serving our customers in the
manner we always have.”
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 spending or
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20191216005532/en/
Victor H. Mendelson (305) 374-1745
Carlos L. Macau, Jr. (954) 987-4000
HEICO (NYSE:HEI)
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