MIAMI and HOLLYWOOD, Fla., April 25, 2017 (GLOBE NEWSWIRE) -- 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.