HEICO Corporation Acquires Leading Niche Power Amplifier Maker
November 28 2018 - 8:30AM
Business Wire
HEICO Corporation (NYSE: HEI.A) (NYSE: HEI) today announced that
its Electronic Technologies Group acquired approximately 93% of the
stock of Apex Microtechnology, Inc. (“Apex”) in an all cash
transaction. Members of Apex’s management own the balance of the
firm.
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.
Tucson, AZ-based Apex is the leading designer and manufacturer
of precision power analog monolithic, hybrid and open frame
components for a certain wide range of aerospace, defense,
industrial, measurement, medical and test applications. Among
Apex’s most recognized products are high-end Power Operational
Amplifiers, PWM Amplifiers and Voltage References.
Founded in 1980, Apex employs nearly 100 people at its
state-of-the-art Tucson headquarters, engineering and production
facility, as well as at international sales locations. Apex is
known as a leader for consistently developing products that lead
the industry in terms of performance, quality, and reliability.
Apex’s entire management team will remain with the company in
their pre-acquisition positions and no material staff turnover is
expected. Apex will continue to operate in its current locations
and will be led by its long-time CEO and shareholder, Greg Brennan,
who remains a shareholder.
Laurans A. Mendelson, HEICO’s Chairman and Chief Executive
Officer, along with Victor H. Mendelson, HEICO’s Co-President and
CEO of HEICO’s Electronic Technologies Group, remarked, “Apex
continues HEICO’s practice of buying the best-in-class, niche
electronic components companies which are known for having
excellent talent serving a demanding customer base. From the moment
we met the Apex team, we were impressed by the operation they built
and their commitment to quality. We welcome everyone at Apex to the
HEICO family.”
Greg Brennan, Apex’s long-time CEO and part-owner, commented,
“We wanted the right long-term partner for Apex and its people.
That partner had to be someone who not only understood our
business, our customers and our people, but also one that had the
same commitment to constant product development and quality. We
found HEICO as a terrific partner and we are excited to have come
together.”
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, FL-based Flight Support Group and its Miami, FL-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, 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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Victor H. Mendelson, (305) 374-1745Carlos L. Macau, Jr., (954)
987-4000
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