HEICO Corporation Subsidiary Acquires Decavo, LLC
February 28 2019 - 8:00AM
Business Wire
HEICO’s 7th Acquisition in the
Past 12 Months
HEICO Corporation (NYSE:HEI) (NYSE:HEI.A) today announced that
its Flight Support Group acquired 80.1% of Decavo, LLC (“Decavo”)
in an all cash transaction.
HEICO stated that it expects the acquisition to be accretive to
its earnings within the year following the purchase. Further
financial terms and details were not disclosed.
Hood River, Oregon-based Decavo designs and produces complex
composite parts and assemblies incorporated into camera and related
sensor assemblies and UAV airframes used in demanding defense and
civilian applications.
Decavo employs approximately 40 team members in Hood River,
Oregon and was founded in 2009. Decavo’s expertise includes
engineering and manufacturing complex composites with unique
structural and electromagnetic interference characteristics.
Decavo’s two co-founders, Phil Nies and Blake Richards will
retain ownership in Decavo. Mr. Nies will assume the role of
President, while Mr. Richards will remain in a senior advisory and
shareholder role. Decavo will continue to operate in its current
location, and no staff turnover is expected.
Laurans A. Mendelson, HEICO’s Chairman & Chief Executive
Officer, and Eric A. Mendelson, HEICO’s Co-President and CEO of its
Flight Support Group, jointly noted, “Decavo has demonstrated the
ability to creatively engineer and manufacture composite products
in response to exacting requirements. Phil and Blake have grown
Decavo by being highly responsive to their customers, many of whom
are located in the Hood River region. Decavo has excelled at
responding technically and with turn times that have fostered
exceptional growth. We are thrilled to have Phil and Blake and the
entire Decavo team join the HEICO family.”
Phil Nies and Blake Richards, Decavo’s co-founders, jointly
commented: “We wanted to associate with a larger organization that
can provide financial and other resources to allow us to focus on
engineering, design and manufacturing as well as develop our team.
HEICO was our first choice, as we found a partner who would ensure
that our team enjoys continued stability and resources offered by
the HEICO organization.”
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 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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Eric A. Mendelson (305) 374-1745Carlos L. Macau, Jr. (954)
987-4000
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