HEICO Corporation Announces Important Acquisition
November 01 2018 - 11:00AM
Business Wire
HEICO Acquires Specialty Silicone Products,
Inc., Marking Its 5th Acquisition In The Past 12
Months
HEICO Corporation (NYSE: HEI.A) and (NYSE: HEI) today announced
that its Electronic Technologies Group acquired Specialty Silicone
Products, Inc. (“SSP”) in an all cash transaction.
HEICO stated that it expects the acquisition to be accretive to
its earnings in the year following the purchase. Further financial
terms and details were not disclosed.
Ballston Spa, NY-based SSP is a leading designer and
manufacturer of silicone materials for a variety of demanding
applications, used in aerospace, defense, research, oil and gas,
testing, pharmaceuticals and other markets. SSP will be part of
HEICO’s Electronic Technologies Group, which is comprised of
businesses that specialize in the design and manufacture of
highly-engineered, mission-critical products that must successfully
operate in the harshest environments.
Since SSP’s founding in 1989, the company has been a consistent
innovator and pioneer within the silicone manufacturing industry.
SSP employs approximately 70 team members and operates out of one,
52,000 square foot, state-of-the-art facility in Ballston Spa,
NY.
As is customary with the vast majority of HEICO’s previous
acquisitions, SSP’s entire management team will remain with the
company in their pre-existing positions and no material staff
turnover is expected post-acquisition.
Laurans A. Mendelson, Chairman and Chief Executive Officer of
HEICO Corporation, along with Victor H. Mendelson, HEICO’s
Co-President and Chief Executive Officer of the Electronic
Technologies Group, jointly commented, “We are thrilled to partner
with SSP. We admire SSP’s commitment to excellence and focus on
customer needs. It became apparent to us throughout our due
diligence and negotiations that our two companies' cultures and
people could not be a better fit. We welcome the entire SSP team to
the HEICO family.”
Patricia Babbie-Reo, Ted Taylor and Fred Sober, SSP's founders
and current shareholders, remarked: “Though we had a variety of
suitors as we were contemplating a sale, we felt an immediate
connection with the HEICO staff and truly believe that SSP has
found a great, long-term home, with similar values and
culture.”
Paul DiCaprio, SSP’s President said, “We look forward to our
next chapter of excellence and growth with our new partners. We are
excited to join the HEICO team and look forward to working with
them.”
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, but
not limited to: 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.
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HEICO CorporationVictor H. Mendelson, 305-374-1745 ext.
7590orCarlos L. Macau, Jr., 954-987-4000 ext. 7570
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