HEICO Corporation Completes Air Cost Control Acquisition
April 25 2017 - 8:30AM
HEICO Corporation (NYSE:HEI.A) (NYSE:HEI) announced today that its
Flight Support Group completed the acquisition of Air Cost Control
(“A2C”). Financial terms were not disclosed, but HEICO stated
that it expects the acquisition to be accretive to its earnings
within the year following closing.
On March 8, 2017, HEICO announced it had entered into an
agreement, subject to foreign governmental approval which was
subsequently received, to acquire 80.1% of the operating units of
A2C from its founders, Laurent and Laure Parelle. The
Parelles will continue to own 19.9% of A2C, which will operate as
part of HEICO’s Flight Support Group.
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
organizations worldwide.
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.
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 Flight
Support Group and its 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 reduce demand for our
goods and services; product specification costs and requirements,
which could increase 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 industries we
serve, 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)
Historical Stock Chart
From Apr 2024 to May 2024
HEICO (NYSE:HEI)
Historical Stock Chart
From May 2023 to May 2024